"Keeping an Eye on Global Investment Trends: Issue No. 46"

 In 2023, global foreign direct investment (FDI) flows reached an estimated $1.37 trillion, marking a slight increase of 3% compared to 2022. This growth defied initial recession concerns, with financial markets performing well throughout the year. However, the positive headline increase was primarily driven by higher values in a few European conduit economies. When excluding these conduits, global FDI flows experienced an 18% decrease.

Within developed countries, FDI in the European Union saw a significant shift from negative $150 billion in 2022 to positive $141 billion, mainly due to substantial fluctuations in Luxembourg and the Netherlands. Disregarding these two countries, inflows to the rest of the EU declined by 23%, with several major recipients experiencing decreases. In other developed countries, FDI flows remained stagnant, showing zero growth in North America and declines in other regions.

Developing countries witnessed a 9% decrease in FDI flows, totaling $841 billion, with most regions experiencing declining or stagnating flows. Developing Asia saw a 12% decrease in FDI, while Africa reported a 1% decline. Latin America and the Caribbean maintained stability, with Central America defying the trend.

International investment project announcements, covering greenfield (primarily industry), project finance (mainly infrastructure), and cross-border mergers and acquisitions (M&As), generally trended negatively. Higher financing costs in 2023 resulted in a 21% decrease in international project finance deals and a 16% decline in cross-border M&As. Greenfield project announcements saw a 6% decrease in number but a 6% increase in value, indicating signs of recovery, particularly in manufacturing.

Key trends among top FDI recipient economies include:

In developed regions, international investment project announcements showed a universal decrease. M&A values were $280 billion lower than in 2022, directly impacting FDI flows. Project finance deals were $157 billion lower, and lower values of greenfield project announcements are likely to affect 2024 FDI flows.

The United States, the largest FDI recipient, experienced a 3% decrease in FDI inflows in 2023, with a 2% decline in greenfield project numbers and a 5% decrease in project finance deals.

China reported a rare decline in FDI inflows (-6%) but demonstrated growth in new greenfield project announcements (+8%).

ASEAN, typically a driver of FDI growth, reported a 16% decline in FDI. However, the region showcased its attractiveness for manufacturing investment with a 37% increase in greenfield project announcements, particularly in countries like Vietnam, Thailand, Indonesia, Malaysia, the Philippines, and Cambodia.

India reported a substantial drop in FDI inflows (-47%), but stable numbers of new project announcements, keeping it in the top 5 global greenfield project destinations.

In West Asia, FDI remained stable (+2%), buoyed by continued robust investment in the United Arab Emirates, witnessing a 28% rise in greenfield announcements. Saudi Arabia also experienced a significant jump of 63% in greenfield numbers.

FDI flows to Africa were nearly flat at an estimated $48 billion (-1%), with greenfield project announcements increasing, notably in Morocco, Kenya, and Nigeria. However, project finance deals dropped by one-third, weakening prospects for infrastructure finance flows.

In Latin America, Brazil reported a 22% decrease in FDI inflows. Greenfield project numbers remained steady, but international project finance experienced a sharp decline, with 40% fewer deals compared to 2022. Mexico, on the other hand, reported increased FDI and a further rise in new greenfield project announcements, solidifying its position among the top global recipients.

ugc net result december 2023bangladesh premier leagueinternational league t20uae t20 leagueilt20 2024vip vs abduae t20uae t20 league 2024dub vs emidesert vipers vs abu dhabi knight ridersdubai international stadiumbangladesh premier league 2023ilt20 2023sharjah cricket stadiuminternational league t20 2023uae t20 league liveuae t20 league live telecast in indiavip vs abd scorecarduae t20 league 2023dubai international stadium pitch reportdubai t20 leagueuae t20 league 2024 scheduleuae t20 league 2023 scorecardniti aayog chairmanuae t20 2023