GENEVA – Global foreign direct investments (FDI) posted a modest increase of over 3 percent to reach an estimated USD1.37 trillion in 2023, defying expectations as recession fears early in the year receded and financial markets performed well.
Global FDI flows increased but economic uncertainty and higher interest rates affected global investment.
The rise was mainly due to higher values in a few European conduit economies, the United Nations Conference on Trade and Development's (UNCTAD) Global Investment Trends Monitor said.
The report, however, noted that without the conduits, global FDI flows were 18 percent lower.
In developed countries, FDI in the European Union jumped from negative USD150 billion in 2022 to positive USD141 billion because of large swings in Luxembourg and the Netherlands.
Excluding those two countries, inflows to the rest of the EU were 23 percent down, with declines in several large recipients.
Inflows in other developed countries also stagnated, with zero growth in North America and declines elsewhere.
FDI flows to developing countries fell by 9 percent, to USD841 billion, with declining or stagnating flows in most regions.
FDI decreased by 12 percent in developing Asia and by 1 percent in Africa, while it was stable in Latin America and the Caribbean as Central America bucked the trend. (WAM)
