The 2021 FDI Report from FDI Intelligence outlines key regional factors driving FDI through the current turbulent times.
Covid-19 has deeply shocked the world economy and global investment plummeted accordingly. However, a deeper look at the data published in The fDi Report 2021 reveals the many different nuances of this main narrative, and provides valuable guidance for the years to come.
In 2020, both the number of FDI projects and capital investment in FDI dropped by a third. This is hardly surprising given the tumultuous year seen across the globe. fDi Markets, a service from the Financial Times, recorded 11,223 FDI projects compared to the 16,816 recorded in 2019. Capital investment declined 34% to a total of $528.2bn with job creation falling by 41% to 1.4 million.
Key foreign direct investment trends spotted include:
Renewable energy replaces coal, oil & gas as the top sector by capital investment for the first time ever
The US retains its spot as the top destination country, attracting $61bn of FDI
China is the largest recipient of capital investment in Asia-Pacific, attracting $29.7bn
Western Europe is the leading source region, accounting for 49% of FDI projects globally
The UK is the top destination country for FDI in Europe
The communications sector increases capital investment by 41%, adding $56bn
