The 6-monthly roundup of foreign direct investment data is out now. In general, we see continuing downward trends, which could be a reflection of ongoing geopolitical tensions and a deteriorating overall economic climate. Some key findings and trends for FDI in 2023 include:
✔ Global FDI flows dropped by 7%, continuing on a downward trend and failing to reach pre-pandemic levels for the second year in a row.
✔ Downswings were recorded for more than two-thirds of OECD economies and other major FDI recipients, such as the People’s Republic of China, who received record-low FDI flows.
✔ Despite the drop, the United States was the leading FDI recipient worldwide, followed by Brazil and Canada.
✔ OECD equity flows remained below any level recorded since 2005, partially reflecting a slowdown in new investment activity.
✔ Cross-border mergers and acquisitions activity continued on a downward trend, hitting a ten-year record low.
✔ In general, greenfield investment activity stalled. The number of new projects announced dropped by 20% in advanced economies, but increased by 9% in emerging and developing markets.
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