Global Foreign Direct Investment (FDI) flows grew by 77% in 2021 to $1.6 trillion

Posted on February 16, 2022   |  

  • Global foreign direct investment (FDI) flows grew by 77% in 2021 to $1.6 trillion, up from the $929 billion recorded in 2020, surpassing their pre-COVID-19 level.
  • FDI flows in developing economies grew by 30% and reached $870 billion, with a 20% growth in east and south-east Asia, a recovery to near pre-pandemic levels in Latin America and the Caribbean, and an uptick in west Asia.
  • The Least Developed Countries (LDCs) saw reasonable recovery growth, but the developed economies saw the biggest rise due to which FDIs reached $777 billion in 2021.
  • Recovery of investment flows to developing countries is hopeful, but the stagnation of new investment in LDCs in industries important for productive capacities and key Sustainable Development Goals (SDG) sectors such as electricity, food, or health is a major reason for the problem.