Global FDI grows 77% in 2021: UNCTAD

Global FDI flows grew 77% in 2021, to 1 trillion 647,000 million dollars, according to preliminary projections by UNCTAD released this Wednesday.

Within this figure, the amount corresponding to developed economies increased 199%, reaching 777,000 million dollars.

Meanwhile, FDI flows to developing economies climbed 30% to $870.00 million.

Lastly, investments in the least developed economies totaled 28 billion dollars, an increase of 19% year-on-year.

Overall, according to UNCTAD, investor sentiment is strong in the infrastructure sectors, supported by favorable long-term financing terms, recovery stimulus packages and offshore investment programmes.

Similarly, international project finance deals increased 53% in number and 91% in value, with significant increases in most high-income regions and in Asia and Latin America and the Caribbean.

Global FDI

By contrast, investor confidence in the industry and global value chains remains weak.

Announcements of greenfield investment projects (new projects) remained practically flat (-1% in number, +7% in value).

The number of new projects in GVC-intensive industries (eg electronics) fell further.

Other trends by sector

Greenfield investment activity remains 30% below pre-pandemic levels on average across all industry sectors.

Only information and communication (digital sector) has fully recovered.

Meanwhile, funding for infrastructure projects is now above pre-pandemic levels in most sectors.

Project numbers are highest in renewable energy and industrial real estate.

At the same time, the boom in cross-border mergers and acquisitions is most pronounced in services.

The number of operations in information and communication increased by more than 50% to a quarter of the total.


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