As TNCs adopt a cautious optimism for the global outlook, FDI could
rise in 2014–2016. However, the fragility in some emerging markets
and risks related to policy uncertainty and regional conflict could still
derail the expected upturn in FDI flows.
Responses to this year’s survey revealed that firms − mostly
based in developed economies − are still cautious about recovery
prospects in home economies and possible political uncertainties in
emerging markets. This translated into a high share of investors (68
per cent) stating that they were neutral or undecided about the state
of the international investment climate for 2014. However, almost half
of the respondents (46 per cent) were confident about a positive global
climate already for the year 2015, and 48 per cent of them expressed
themselves as optimistic for the year 2016 (figure 1). The very low share
of pessimistic answers suggests that while investors take into account
possible risks in their investment plans they do not believe risks of a
global recession can effectively upset the investment climate