UNCTAD released the 'World Investment Report 2023'
According to UNCTAD's World Investment Report 2023 released on 5 July 2023, FDI in developed economies fell by 37 percent to $378 billion, while FDI in developing countries increased by 4 percent to more than $916 billion.
The report shows that global foreign direct investment (FDI) is set to fall by 12% in 2022.
Five economies in developing Asia account for about 80% of the total investment, namely China, Hong Kong, Singapore, India, and the United Arab Emirates.
Key facts
The 4 countries with the highest FDI in the world are the USA ($285 billion), China ($189 billion), Singapore ($141 billion), and Hong Kong ($118 billion).
India - 8th largest FDI recipient country in the world with an increase of 10% to $49.3 billion. India is the third largest country in the world in greenfield project announcements worth $42 billion.
Apart from this, Bangladesh has received FDI with a growth of 20% to $3.5 billion, United Arab Emirates (UAE) - with a growth of 10% to $23 billion, and Saudi Arabia - with a decline of 59% to $7.9 billion.
FDI in ASEAN member countries grew by an impressive 41% to reach $222 billion. RCEP participating countries saw a massive 42% increase in FDI and reached $580 billion.
The report states that developing countries face an investment gap of $2.2 trillion annually out of a $4 trillion annual funding gap for the Sustainable Development Goals to reach the energy transition goals.
United Nations Conference on Trade and Development (UNCTAD)
Established in 1964, UNCTAD promotes the development-friendly integration of developing countries into the world economy. Its headquarter is in Geneva, Switzerland. Some of the reports published by it are- Trade and Development Report, Least Developed Countries Report, Information and Economy Report, Technology and Innovation Report, and Commodities and Development Report.