PARIS - New OECD data and analysis show that global FDI flows rebounded to $972 billion in the first half of 2022, but this masks a 22% drop in the second quarter 0f 2022, compared to the previous quarter.
2022Global FDI flows up overall by 20% in the first half of 2022, but this masks a 22% drop in the second quarter
▪ Global FDI flows rebounded to USD 972 billion in the first half of 2022.However, much of the increase came in the first quarter, whereas global FDI flows dropped by 22% in Q2 2022,compared to the previous quarter.This drop is not surprising given increasing inflation and interest rates, rising energy prices and Russia’s full-scale invasion of Ukraine.
▪ FDI inflows to the OECD area increased to $488 billion, up by 28% compared to the second half of 2021. Following an increase of59% in Q1 2022, these flows dropped by 38% in Q2, mostly due to movements in intra-company debts, while equity inflows and reinvested earnings increased.
▪ Outflows from the OECD area increased to USD 838 billion, the highest half-year level since 2013.Nevertheless, much of the increase was driven by the first quarter (up by 26%), whereas FDI outflows from OECD countries dropped by 5% in Q2.
▪FDI flows into non-OECD G20 economies dropped by 19%in the first half of 2022 over the previous semester.Zooming in on the quarterly data, they increased by 17% in Q1 and dropped by 39%in Q2, largely due to lower inflows in China and negative inflows toRussia for the second consecutive quarter.Similarly,in the first half of 2022, FDI outflows decreased by 38%.
▪ The United States was the leading FDI recipient worldwide, followed by China and Brazil.The United States was also the major investor worldwide, followed by the Netherlands and Australia.
▪ Completed cross-border M&A activity in advanced economies continued on a downward trend. The value of completed deals dropped by 15% in advanced economies and by 16% in emerging markets and developing economies in the first half of 2022, and continued on this path in the third quarter.
▪ Announced greenfield projects showed moderate signs of growth in the first semester of 2022, mostly driven by large investment projects announced in emerging markets and developing economies in manufacturing sectors, especially in the renewable energy
For more information, visit: https://www.oecd.org/investment/investment-policy/FDI-in-Figures-October-2022.pdf?utm_source=Adestra&utm_medium=email&utm_content=FDI&utm_campaign=Business%20and%20finance%20news%20from%20the%20OECD%20-%20Oct%202022%20-v2&utm_term=daf