Global foreign direct investment rebounded strongly in 2021

Global foreign direct investment (FDI) flows showed a strong rebound in 2021, up 77% to an estimated .65 trillion, from billion in 2020, surpassing their pre-Covid-19 level, according to UNCTAD´s Investment Trends Monitor.

Developed economies saw the biggest rise by far, with FDI reaching an estimated $777 billion in 2021 – three times the exceptionally low level in 2020, the report showed.

In Europe, more than 80% of the increase in flows was due to large swings in conduit economies. Inflows in the United States more than doubled, with the increase entirely accounted for by a surge in cross-border mergers and acquisitions (M&As).

FDI flows in developing economies increased by 30% to nearly $870 billion, with a growth acceleration in East and South-East Asia (+20%), a recovery to near pre-pandemic levels in Latin America and the Caribbean, and an uptick in West Asia.