Global FDI flows fall 44% to 136 billion

Global flows of foreign direct investment (FDI) fell 44% to $ 136 billion in the first quarter of this year, compared with $ 242 billion in the previous quarter, according to a study by the World Food Organization. economic cooperation and development.
According to Reuters, investment from the United States has dropped to $ 145 billion, which means that US companies have reported more money abroad than foreign firms. Negative for the first time since the fourth quarter of 2005. The change is due to large transfers of US parent companies to the profits of its subsidiaries abroad.
The study released yesterday that the tax reforms led by US President Donald Trump have caused a major disruption in global investment flows attracting the United States. More money than expected abroad for the first time since 2005.
The Paris-based organization said its study is the first to reveal data on the impact Trump approved tax cuts on FDI flows.
] Mar said, "Normally, the United States is the largest source of foreign investment in the world, and this is reflected in global flows."
This announcement comes amid the triumph of the President American Donald Trump yesterday on a rise in US growth to 4.1% in the second quarter, calling it an economic "miracle." According to the French Trump, "with the conclusion of additional trade agreements, we will get more figures high, "he added," which demonstrates the success of economic policies "
fears that the increase in car sales and the purchase of US products abroad During the first quarter may have been due to strategic acquisitions before the fees "Trump said the economic outlook is not troubling, adding that growth in the third quarter would be" exceptionally good. "

Trump continued: "These numbers are very viable and this is not a result you will get once. "

The Republicans quickly welcomed the results that they see as evidence that their policies of tax cuts and economic deregulation are succeeding."
Paul Ryan, the majority leader, commented on the news. Improving his party's chances for the mid-term elections in November Republic in the House of Representatives "This is precisely the growth we were hoping for thanks to our economic policies to promote growth. "This growth rate is the highest since the third quarter of 2014.
Patrick O. Hare, an analyst at Preving.com, said the main concern of some people is that this growth may not be sustainable being given that export growth is probably due to an increase Pre-invoicing Fee