Britain remained the second largest destination for foreign direct investment last year after the US, a UN agency forecast yesterday, although turmoil in world financial markets and slowing economic growth will cut global foreign direct investment flows this year from last year’s record-breaking pace.

The latest annual world investment report from the UN Conference on Trade and Development said total inflows of FDI surged 30 per cent last year to $1,833bn (£990bn), surpassing the previous peak in 2000 by $400bn. Top recipients of FDI in 2007 were the US with $233bn, the UK ($224bn) and France ($158bn). China was in sixth place ($84bn), followed by Hong Kong ($60bn). Russia came ninth ($52bn), Brazil 14th ($35bn) and India 20th ($23bn).

Financial Times