FDI drops 15%, declines forecast for next few months

Inward foreign direct investment (FDI) declined 15.8 percent to $5.83 billion in February, the fifth monthly fall in a row, as a result of the credit crunch and economic downturn across the globe.

"The slowdown of capital activities, in particular, will further affect capital inflows to China," Yao Jian, spokesman for the Ministry of Commerce, said yesterday.

According to a report released by United Nations Conference on Trade and Development, global FDI dropped by 21 percent last year, and is estimated to plunge by as much as 30 percent this year.