After a strong rebound in 2021, Global FDI fell 12% in 2022 to $1.3 trillion, driven mainly by overlapping global crises. – the war in Ukraine, high food and energy prices and soaring public debt.
The decline was mainly felt in developed economies, where FDI fell 37% to $378 billion. But flows to developing countries increased by 4%, albeit unevenly, with a few large emerging countries attracting the bulk of investment while flows to least developed countries declined.
Explore the data in the interactive FDI chart below.
On a positive note, announcements of greenfield investment projects increased by 15% in 2022growing in most regions and sectors.
Sectors facing supply chain challenges, including electronics, semiconductors, automotive and machinery, have seen an increase in projects, while investments in digital economy sectors have slowed .
International investment in renewable energy production, including solar and wind, also continued to grow, but at a rate 8% slower than the 50% growth recorded in 2021. In particular, announced projects in manufacturing of batteries tripled to reach more than $100 billion in 2022.
The report also notes that major oil companies are gradually selling off their fossil fuel assets – at a rate of around $15 billion per year – primarily to unlisted private equity firms and smaller operators with less stringent disclosure requirements.
This requires new trading models to ensure responsible asset management.