In a context where global foreign investment increased by 10.9% in 2013, in particular in Europe (+25.2%) and in Latin America (+17.5%), its shares directed to developed economies has reached an historic low. Macroeconomic fragility and policy uncertainties are driving investors to caution.
New Zealand's FDI stock, in relation to the GDP, represents practically the double of that of Australia and Canada and three times larger than that of the Scandinavian countries. Most of the FDI inflow stock in New Zealand comes from the United States, Australia, the United Kingdom and the Netherlands. Japan, the APEC countries and the rest of Europe are small investors in New Zealand.
The flows of FDI in New Zealand reached a high of almost USD 5 billion in 2008. However, these flows have petered out with the economic crisis, mainly due to the decrease in imports of goods. Despite this, the country has maintained a high level of attractiveness, even if the FDI level of 2013 (USD 3 billion) is in the decrease of over USD 1 billion compare to the previous year. 2014 is looking far better in term of potential FDI in the country.
Information on the 2013 FDI influx in this region can be accessed in the Global Investment Trade Monitor published in January 2014 by the United Nations Conference on Trade and Development (UNCTAD).
|Index of Transaction Transparency*||10.0||6.0||7.0||5.0|
|Index of Manager’s Responsibility**||9.0||5.0||9.0||5.0|
|Index of Shareholders’ Power***||7.0||9.0||5.0|
|Index of Investor Protection****||9.7||6.1||8.3||5.0|
Source: Doing Business - Last Available Data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
|Foreign Direct Investment||2011||2012||2013|
|FDI Inward Flow (million USD)||4,142||2,202||987|
|FDI Stock (million USD)||74,479||82,362||84,026|
|Performance Index*, Ranking on 181 Economies||146||-||-|
|Potential Index**, Ranking on 177 Economies||71||-||-|
|Number of Greenfield Investments***||51||45||47|
|FDI Inwards (in % of GFCF****)||14.1||6.8||2.9|
|FDI Stock (in % of GDP)||45.6||48.1||46.3|
Source: UNCTAD - Last Available Data.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
New Zealand’s efficient, market-driven economy delivers key benefits to investors, including company stability, numerous free-trade agreements and active government support for investment. The country's strong points are:
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Last Updates: October 2014