Foreign direct investment is likely to fall around the world this year as the global financial crisis causes companies to draw in their horns, according to data from a United Nations agency.

The UN Conference on Trade and Development (Unctad), the single most comprehensive source of FDI data, said that cross-border investment, which dropped sharply last year, would probably slide from $1,700bn in 2008 to less than $1,200bn (€815bn, £730bn) this year. Such a fall would take it back to levels seen five years ago.