46th Global Investment trends monitor

• Global FDI in 2023 was weak, with lower flows to developing countries
• Greenfield investment stability, project finance, and M&As significantly lower

Among the key findings of the 46th Global Investment Trends Monitor:

• Global foreign direct investment (FDI) flows in 2023, at an estimated $1.37 trillion, showed a marginal increase (+3%) over 2022, defying expectations as recession fears early in the year receded and financial markets performed well. However, economic uncertainty and higher interest rates did affect global investment. The headline increase was due largely to higher values in a few European conduit economies; excluding these conduits, global FDI flows were 18% lower.

• In developed countries, FDI in the European Union jumped from negative $150 billion in 2022 to positive $141 billion because of large swings in Luxembourg and the Netherlands. Excluding those two countries, inflows to the rest of the EU were 23% 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%, to $841 billion, with declining or stagnating flows in most regions. FDI decreased by 12% in developing Asia and by 1% in Africa. It was stable in Latin America and the Caribbean as Central America bucked the trend.
• International investment project announcements, including greenfield (mainly industry), project finance (mainly infrastructure) and cross-border mergers and acquisitions (M&As), were mostly in negative territory. International project finance and M&As suffered the most from higher financing costs in 2023, with 21% and 16% fewer deals, respectively. Greenfield project announcements were also 6% lower in number. However, they were 6% up in value and showed higher numbers in manufacturing in an initial sign of recovery following a long-term declining trend.