The report spotlights 10 major shifts in global foreign direct investment (FDI).
It reveals how the combination of structural transformations in global value chains, external shocks like the COVID-19 pandemic and rising geopolitical tensions are increasingly influencing investment decisions and hindering development.
Here are some key findings.
FDI struggles to keep pace with GDP
- Since 2010, global GDP and trade have grown annually by an average of 4% and 4.2%, respectively, even amidst rising trade tensions. By contrast, FDI growth has stagnated near zero.
- This lag reflects increased investor caution as a result of shifts in international production and global value chains, rising protectionism and growing geopolitical tensions. It highlights the vulnerability of developing economies that are dependent on FDI.
Shift from manufacturing to services
- The share of cross-border greenfield…
