Global FDI flows rebounded to USD 727 billion in the first half of 2023 but remained 30% below the levels recorded in the first half of 2022. Much of the increase came in the first quarter of 2023, whereas global FDI flows dropped by 44% in Q2 2023, compared to the previous quarter.
Source: OECD International Direct Investment Statistics database.
FDI inflows to the OECD area increased to USD 275 billion yet they were 42% below their levels recorded in the first half of 2022 and below half year levels in 2021. They switched to positive levels in Q1 2023 but then dropped by 58% in Q2, largely due to lower equity inflows and reinvested earnings, partly reflecting that new investment activities continue to slow down.
Outflows from the OECD area more than doubled compared to the second half of 2022, to USD 580 billion, although they were below previous half-year levels. Here too, much of the increase took place in Q1, whereas FDI outflows from OECD countries dropped by 56% in Q2.
FDI flows into non-OECD G20 economies dropped by 15% in the first half of 2023. They decreased by 13% in Q1 and by a further 27% in Q2.
The United States was the leading FDI recipient worldwide, followed by Brazil; Canada and Mexico, both equally ranked as third largest FDI recipient. The United States was also the major investor worldwide, followed by China and Japan.
Completed cross-border M&A activity continued on a downward trend in the midst of a weaking economic environment, impacted by high prices, increasing interest rates, and on-going geopolitical uncertainty. The value of completed deals dropped by 23% in advanced economies and by 49% in emerging markets and developing economies.
Capital expenditures of announced greenfield investment projects remained strong in emerging markets and developing economies, partlydriven by a large project in renewable energy announced in Mauritania but the number of announced projects slowed down.
Global FDI flows rebounded but still struggled in the first half of 2023
31/10/2023 - In the first half of 2023, global FDI flows rebounded to USD 727 billion from very low levels recorded in the second half of 2022, but remained 30% below the level recorded in the first semester of 2022. There were important surges in Luxembourg and the Netherlands from large disinvestments in H2 2022. FDI flows in the United States, the largest recipient of FDI flows, remained stable. However, decreases were recorded in more than two-third of OECD economies
Published twice yearly, FDI in Figures provides analysis on key developments and trends in global foreign direct investment flows using the most recent FDI statistics and data on mergers and acquisitions (M&A).