Short-term FDI expenditure plans vary across sectors, according
to the survey results (figure 7). Manufacturing TNCs were the most
bullish about their foreign investments in 2012, with roughly 60 per
cent of respondents indicating that they will be increasing their FDI
expenditures over 2011 levels. In contrast, only 45 per cent of TNCs
in the primary sector and 43 per cent of those in services expected an
increase. For 2014, however, more than half of TNCs in all three major
sectors foresaw an increase in their FDI budgets, in line with their rising
optimism about the global investment environment.
Overall trends, however, reflect a more complex spectrum of
FDI prospects by sector. In the primary sector nearly 40 per cent of
respondents forecast cuts in their FDI expenditures in 2013, and 30 per
cent indicated this intention for 2014 as well. These percentages are
much higher than those in other sectors, suggesting that the growth of
FDI activity in the primary sector may slow in the medium term as TNCs
consolidate the numerous acquisitions they have made in recent years.
Notably, in the services sector a relatively high level of respondents
(roughly 4 in 10) reported no expected change in FDI expenditures over
the period.