Percent of world FDI by country, around the world | TheGlobalEconomy.com (2024)

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Which country has the most FDI in the world? ›

FDI in Figures April 2023

Nevertheless, the United States and China were the top two FDI destinations worldwide in 2022, followed by Brazil, receiving peak level of inflows partly due to increased reinvestment of earnings.

A decrease in FDI has been particularly visible, with global FDI declining from 3.3 percent of GDP in the 2000s to 1.3 percent between 2018 and 2022 (Figure 4.1; see also UNCTAD 2022 for an overview of recent trends in FDI).

FDI ENTRY ROUTES INTO INDIA

Total FDI inflows in the country in the last 23 years (April 2000 - March 2023) are $ 919 bn while the total FDI inflows received in the last 9 years (April 2014- March 2023) was $ 595.25 bn which amounts to nearly 65% of total FDI inflow in last 23 years.

Foreign Direct Investment, percent of GDP, 2021 - Country rankings: The average for 2021 based on 180 countries was 3.69 percent.

United States Foreign Direct Investment (FDI) registered a growth equal to 0.6 % of the country's Nominal GDP in Dec 2022, compared with a growth equal to 1.8 % in the previous quarter. US Foreign Direct Investment: % of Nominal GDP data is updated quarterly, available from Mar 1960 to Dec 2022.

Free-trade agreements with 20 other countries provide access to hundreds of millions of additional consumers. A strong and robust consumer market is a key reason the U.S. ranks top in the world for FDI. The U.S. hosts the most developed, flexible and efficient financial markets in the world.

Top sources of FDI outflows worldwide were the United States (USD 66 billion), Japan (USD 40 billion) and the People's Republic of China (hereafter 'China') (USD 90 billion).

FDI is included in the gross domestic when the money that is invested will be spent to create economic activity to form physical capital.

What country has the highest level of FDI stock in the US? ›

In 2021, no country had a higher foreign direct investment (FDI) position in the United States than Japan, followed by the Netherlands and Canada. At that time, Japan had over 690 billion U.S. dollars invested in the United States.

Norway tops the Human Development Report, with a score of 0.957. Norway is followed by Ireland, Switzerland, Hong Kong, and Iceland respectively. United States ranks 17th with an HDI value of 0.926.

The United States is the top destination of inward foreign direct investment. Source: IMF Data, Coordinated Direct Investment Survey. Note: Chart shows inward FDI positions.

The main investing countries in the U.S. are Japan, Germany, Canada, the United Kingdom, Ireland and France. Most of these investments are in manufacturing, financial and insurance activities, and trade and maintenance. In 2021, California received the most investment, followed by Massachusetts and New York (BEA).

Foreign direct investment is often seen as an economic blessing for developing nations. However, new research reveals that it stimulates resource depletion, while fostering dependency on the income generated from that depletion.

Percent of world Foreign Direct Investment, 2020 - Country rankings: The average for 2020 based on 186 countries was 0.54 percent. The highest value was in China: 21.36 percent and the lowest value was in Switzerland: -21.72 percent. The indicator is available from 1993 to 2020.

A positive value of FDI per capita represents an inflow of foreign investment in a country's economy distributed among its residents, whereas negative values indicate withdrawn investments.

According to BEA, FDI in the United States is defined as the ownership or control, directly or indirectly, by one foreign person, or entity, of 10 percent or more of the voting securities of an incorporated U.S. business enterprise or an equivalent interest in an unincorporated U.S. business enterprise.

Foreign direct investment in the United States was concentrated in the U.S. manufacturing sector, which accounted for 42.4 percent of the position. There was also sizable investment in finance and insurance (12.5 percent) and wholesale trade (9.7 percent).

Who is the biggest investor? ›

Warren Buffett, chairman and CEO of Berkshire Hathaway, is known as the “Oracle of Omaha,” has a net worth of over $108 billion, and is widely considered the most successful investor of the 20th century, with a long-term, value investing approach.

Annual foreign direct investment inflows over the last few years brought total foreign direct investment in the United States to $5 trillion by year-end 2021, measured on a historical-cost basis. This is an increase of 40 percent since 2016.

Governments seek to promote FDI when they are eager to expand their domestic economy and attract new technologies, business know-how, and capital to their country.

Local Chinese Market and Business Climate

The sheer size of China's population makes it an attractive nation for investors to commit capital to higher-end industries like healthcare, information technology, engineering, and luxury goods.

A U.S.-based cellphone provider buying a chain of phone stores in China is an example. In a vertical FDI, a business acquires a complementary business in another country. For example, a U.S. manufacturer might acquire an interest in a foreign company that supplies it with the raw materials it needs.

The top 10 economies for FDI inflows in 2021 were the United States, China, Hong Kong (China), Singapore, Canada, Brazil, India, South Africa, Russia and Mexico.

In recent years, China has been the second largest recipient of foreign direct investments (FDI) worldwide, attracting approximately 181 billion U.S. dollars in 2021.

Since World War II, the United States has been the largest source country for FDI.

Thus, in addition to its effect on technological progress, it appears that FDI contributes to economic growth by increasing total capital accumulation in the host economy.

U.S. companies spent about $11 billion in 2022 buying or investing in Chinese companies, according to the data service firm Dealogic.

What is negative FDI? ›

Negative values of FDI net outflows show that the value of direct investment made by domestic investors to external economies was less than the value of repatriated (disinvested) direct investment from external economies.

In addition, another macroeconomic variable FDI has also been adversely impacted by the pandemic as well. In 2020, global FDI flows dropped by one in three to $1 trillion which is the lowest point after the global financial crisis.

Macroeconomic Effects of Foreign Direct Investment

Some key benefits of foreign direct investment include: Economic Growth: Countries receiving foreign direct investment often experience higher economic growth by opening it up to new markets, as seen in many emerging economies.

The main investing countries in the U.S. are Japan, Germany, Canada, the United Kingdom, Ireland and France. Most of these investments are in manufacturing, financial and insurance activities, and trade and maintenance. In 2021, California received the most investment, followed by Massachusetts and New York (BEA).

Percent of world Foreign Direct Investment, 2020 - Country rankings: The average for 2020 based on 186 countries was 0.54 percent. The highest value was in China: 21.36 percent and the lowest value was in Switzerland: -21.72 percent. The indicator is available from 1993 to 2020.

This can be attributed to the Netherlands' competitive economy, historically business-friendly tax climate, and many investment treaties containing investor protections. The Dutch economy has significant foreign direct investment in a wide range of sectors including logistics, information technology, and manufacturing.

However, for the 10th consecutive year, A.T. Kearney's 2022 FDI Confidence Index identified the United States as the world's top market for foreign investment. It cited a business-friendly environment, market size, and technological infrastructure as three key factors.

The U.S. has the largest consumer market in the world, with a GDP of $20 trillion and 325 million people. Free-trade agreements with 20 other countries provide access to hundreds of millions of additional consumers. A strong and robust consumer market is a key reason the U.S. ranks top in the world for FDI.

In 2021, the United States had the largest outward Foreign Direct Investment (FDI) stock worldwide, amounting to approximately 9.8 trillion U.S. dollars. China was second by a wide margin with around 2.58 trillion U.S. dollars.

The US replaced Mauritius as the second-largest source of foreign direct investment (FDI) into India during 2020-21 with inflows of $13.82 billion, according to government data. Singapore remained the top source of foreign direct investment into the country for the third consecutive fiscal at $17.41 billion.

Which country has the highest FDI confidence index score? ›

The United States retains the top position for investment attractiveness for the 11th consecutive year. For the first time in its 25-year history, the 2023 FDI Confidence Index® features an exclusive ranking for emerging markets, led by China, India, and the United Arab Emirates.