10 small economies including Switzerland, Mauritius host 85% of USD 15 trn phantom FDI: Report

India, Sept. 11 -- Ten small economies including Luxembourg, the Netherlands, Hong Kong SAR, Switzerland, Singapore, and Mauritius host more than 85 per cent of all phantom investments estimated at USD 15 trillion globally, according to a report published by the International Monetary Fund (IMF).

Globally, phantom investments amount to a huge USD 15 trillion, or the combined annual gross domestic product (GDP) of China and Germany, said the report authored by Jannick Damgaard, Thomas Elkjaer, and Niels Johannesen.

"And, despite targeted international attempts to curb tax avoidance...phantom FDI (foreign direct investment) keeps soaring, outpacing the growth of genuine FDI.

In less than a decade, phantom FDI has climbed from about 30 per ...