1 UNCTAD Handbook of Statistics 2018 - Economic trends

Fact sheet #9: Foreign direct investment

Foreign direct investment inflows, 2017
Map 1
(Percentage of gross domestic product)

9 and more
5 to less than 9
2 to less than 5
0 to less than 2
Less than 0
No data

Trends and global patterns of inflows

Concepts and definitions In 2017, world foreign direct investment (FDI) inflows decreased by 23 per cent to
US$1.43 trillion. Thus, having reached a peak of US$1.92 trillion in 2015, investment
fell back to 2013 levels.
FDI is defined as an investment reflecting
In North America and most parts of Europe, inflows of FDI amounted to less than
a lasting interest and control by a foreign
2 per cent of GDP. For most other parts of the world inflows were higher. However,
direct investor, resident in one economy, in
negative FDI inflows, indicating reverse investment or disinvestment, were recorded
an enterprise resident in another economy
in certain economies currently experiencing political instability, such as Venezuela
(foreign affiliate).
and Yemen. Negative FDI inflows were also recorded in some richer economies,
FDI inflows comprise capital provided such as Norway and Denmark.
by a foreign direct investor to a foreign
affiliate, or capital received by a foreign
direct investor from a foreign affiliate. FDI
outflows represent the same flows from the
World foreign direct investment inflows
perspective of the other economy. Figure 1
(Billions of United States dollars)
FDI flows are presented on a net basis, i.e.
as credits less debits. Thus, in cases of 2 000
reverse investment or disinvestment, FDI
may be negative.
1 500
FDI stock is the value of capital and reserves
attributable to a non-resident parent
1 000
enterprise, plus the net indebtedness of
foreign affiliates to parent enterprises
(UNCTAD, 2018b). 500

0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Note: Excluding financial centres in the Caribbean (see note, UNCTAD Handbook of Statistics 2018, table 3.3.1).
 UNCTAD Handbook of Statistics 2018 - Economic trends
1

Inflows and outflows by group of economies

In developing economies, FDI inflows amounted to US$671 billion, almost double the
value of FDI outflows (US$381 billion). Developing economies in Asia and Oceania Global FDI
accounted for more than two thirds of all developing economy inflows and more dropped by 23%
than 90 per cent of their outflows. Developed economies, by contrast, generate
in 2017
more FDI than they receive. In 2017, they recorded inflows of US$712 billion and
outflows of US$1 trillion.

Foreign direct investment inflows and outflows, 2017

Figure 2
(Billions of United States dollars)

I n fl o w s
Developing economies O u t fl o w s

Africa
Developing
economies

America
Developing
Asia and Oceania
economies
Transition economies received
twice as much FDI
Developed economies
than they initiated
0 200 400 600 800 1 000 1 200

Note: Excluding financial centres in the Caribbean (see note, UNCTAD Handbook of Statistics 2018, table 3.3.1).

Origins and destinations of foreign direct investment

In 2017, developed economies’ share of global outward FDI remained unchanged
at 71 per cent. Over the last two years, developed economies in America accounted
for an increasing proportion. Their share rose from 20 per cent in 2015 to 29 per
cent in 2017, thus reaching the same share as Europe. Asia and Oceania
On the recipient side, Asia and Oceania strengthened their position as the main host attract more
region of FDI in the developing world, accounting for one third of world FDI. The FDI than any other
share of American developing economies increased from 7 per cent in 2016 to 11 developing region
per cent in 2017, while the share of Africa remained at 3 per cent.1
1
For further analyses on that topic, see UNCTAD (2018b).

Selected foreign direct investment flows

Figure 3
(Percentage of world total)
O u t fl o w s f r o m d e v e l o p e d e c o n o m i e s I n fl o w s t o d e v e l o p i n g e c o n o m i e s
80 80
Asia and Oceania

60 60 Developed
America and Europe
40
Europe
40 each account for 29%
Asia and Oceania of world FDI outflows
20 20
America
America
0 Africa 0
2007 2012 2017 2007 2012 2017
Note: Excluding financial centres in the Caribbean (see note, UNCTAD Handbook of Statistics 2018, table 3.3.1).

For references, see UNCTAD Handbook of Statistics 2018, annex 6.4.