The world's foreign direct investment (FDI) declined by almost 40 percent in 2009, according to a report by the United Nations Conference on Trade and Development (UNCTAD) released on Tuesday in Geneva.

The UNCTAD "Monitor" showed that FDI decreased from US$1.7 trillion in 2008 to only slightly more than US$1 trillion in 2009, with the greatest drop during 2009' s first quarter.

James Zhan, director of the UNCTAD's investment and enterprise division, said that sectors vulnerable to cyclical changes, such as automobiles and luxury goods, "have come down drastically," while others, such as natural resources, pharmaceuticals and agriculture, have decreased less substantially.

The United States and China were ranked as the top two recipients of FDI in 2009. Nevertheless, FDI to the United States decreased by 57 percent, from US$316.1 billion to US$135.9 billion, and FDI to China fell by 2.6 percent, from US$92.4 billion to US$90.0 billion.

Calling the International Monetary Fund's prediction of a 3.1- percent global GDP increase "very promising," Zhan forecast a moderate rebound in FDI for 2010 and a more significant recovery in 2011.

The Geneva-based UNCTAD was established in 1964 and has 193 members.

(Xinhua News Agency January 20, 2010)