Global FDI Flows 2023: 3% Growth Despite Challenges

27.02.2024

According to UNCTAD, the volume of Foreign Direct Investments (FDI) in the global economy has reached $1.37 trillion in 2023 marking a 3% increase compared to 2022. 

Despite economic uncertainties and high interest rates affecting global investments the growth was primarily driven by certain European countries. Without their contribution global FDI would have declined by 18%.

Within the European Union the FDI has seen an increase due to significant fluctuations in Luxembourg and the Netherlands. However in other developed countries inflows remained nearly stable or decreased.

FDI flows into developing countries have experienced a 9% drop amounting to $841 billion. This decline was particularly noticeable in the developing markets of Asia and Africa, while Latin America remained relatively stable.

Key trends in global FDI flows include:
  • The United States reported a 3% decrease in FDI inflows, and China saw a 6% reduction, but both countries witnessed an 8% growth in greenfield projects.
  • The ASEAN region experienced a 16% decrease in FDI, but investments in greenfield projects surged by 37%.
  • Western Asia saw stable FDI (+2%), driven by ongoing investment growth in the UAE, where announcements of new investment projects increased by 28%, ranking second globally after the USA. Saudi Arabia also saw a 63% rise in new projects.
  • India reported a decrease in FDI, but the number of greenfield projects remained steady, securing its position among the top five global leaders in new projects.
  • FDI flows into Africa remained almost unchanged.
  • Brazil reported a 22% decrease in FDI inflows, while Mexico reported an increase.

In Kazakhstan, according to NBRK data, net FDI inflows decreased by 33.5% in the first nine months of 2023, totaling $4.6 billion. 
One of the main reasons for the decline is the shift in the investment distribution structure across sectors, including a reduction in key industries like mining (-32%) and financial-insurance activities (halved to $982.8 million).



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Saved: 22.12.2024






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