Global FDI flows fall to $1.29T in 2022

By Tuba Ongun

ANKARA (AA) - Global foreign direct investment (FDI) flows decreased to $1.29 trillion in 2022, according to the Organization of Economic Co-operation Countries (OECD) data released on Friday.

The figure was down 24% from the previous year after large withdrawals of capital by a telecommunication MNE operating in Luxembourg, the Paris-based organization said in a statement.

"This drop was partly offset by surges in Switzerland, from large disinvestments in 2021, and in the UK, who recorded large negative inflows in the previous year," it said.

Excluding this withdrawal, global FDI flows declined by 5% in 2022 compared to the previous year.

Inflows to the OECD area dropped 26% from a year earlier to $496 billion.

FDI flows into the US plunged by 21% last year, while Australia, Italy and Sweden saw significant hikes.

Despite the decline, the US remained the top destination for FDI inflows worldwide in 2022 with $318 billion, followed by China $180 billion and Brazil $85 billion.

FDI outflows from the OECD area also dropped by 14% to $1.07 trillion in the same period.

The US was the major source of FDI outflows worldwide with $403 billion, followed by Japan with $162 billion and China with $150 billion.