Global Foreign Direct Investment (FDC) grew again in 2023, after declining the previous year, with inward direct investment increasing by $1.75 trillion, or 4.4 per cent, to hit a record $41 trillion, according to the International Monetary Fund’s (IMF) latest Coordinated Direct Investment Survey.
The survey, which provides detailed information on direct investment positions between countries, shows that FDI rose in most regions, with Central and South Asia, Europe, and North and Central America contributing most.
Direct investment between advanced economies grew by $880 billion, or 3.6 per cent, while those from advanced economies to emerging market and developing economies rose by $538 billion, or 7.6 per cent.
Specifically, the data indicates that the United States extended its lead as the top destination for direct investment. Singapore recorded the largest gain in 2023, with its position rising $307 billion, followed by $227 billion for the United States and $164 billion for Germany.
Meanwhile, the Netherlands and Luxembourg posted the steepest declines but remained in the top five, alongside the United States, China, and the United Kingdom. Strong growth was also seen in many emerging economies.
Most notably, India, Mexico, and Brazil each saw their inward direct investment positions rise by around $130 billion or about 20 per cent, marking the largest increase for these three economies in total since the survey began in 2009.
The IMF’s annual Coordinated Direct Investment Survey is the only worldwide source of bilateral FDI positions between economies.
It aims to provide a geographic distribution of inward and outward FDI worldwide, contribute to a better understanding of the extent of globalization, and support the analysis of cross-border linkages and spillovers in an increasingly interconnected world.
