JETRO Invest Japan Report 2021
Chapter1. Macroeconomic and Inward/Outward Foreign Direct Investment Trends in the World and Japan Section2. FDI Trends in the World and Japan
Global Trends in Outward FDI

Looking at the global outward FDI (net flow; hereinafter outward FDI) by region in 2020, developed economies accounted for 46.9%, and developing economies 53.1% (Chart 1-18). Investment by developed countries and regions, in particular, fell sharply (Chart 1-19). The amount of outward FDI by Japan, the largest investor in 2018 and 2019, fell by 49.0% year on year, and there was a net withdrawal of investment by the Netherlands. The ratio of outward FDI from developed economies fell below 50% for the first time in two years, and that from developing economies (53.1% of the total) reached a record high.

Looking at the Outward FDI by Region, in 2000, 92.1% for developed economies and 7.9% for developing economies; in 2001, 91.2% for developed economies and 8.8% for developing economies; in 2002, 91.3% for developed economies and 8.7% for developing economies; in 2003, 90.4% for developed economies and 9.6% for developing economies; in 2004, 85.9% for developed economies and 14.1% for developing economies; in 2005, 84.6% for developed economies and 15.4% for developing economies; in 2006, 83.1% for developed economies and 6.9% for developing economies; in 2007, 85.2% for developed economies and 14.8% for developing economies; in 2008, 80.5% for developed economies and 19.5% for developing economies; in 2009, 76.1% for developed economies and 23.9% for developing economies; in 2010, 70.7% for developed economies and 29.3% for developing economies; in 2011, 73.2% for developed economies and 26.8% for developing economies; in 2012, 70.1% for developed economies and 29.9% for developing economies; in 2013, 65.9% for developed economies and 34.1% for developing economies; in 2014, 62.0% for developed economies and 38.0% for developing economies; in 2015, 74.4% for developed economies and 25.6% for developing economies; in 2016, 72.6% for developed economies and 27.4% for developing economies; in 2017, 67.8% for developed economies and 32.2% for developing economies; in 2018, 49.5% for developed economies and 50.5% for developing economies; in 2019, 64.0% for developed economies and 36.0% for developing economies; and in 2020, 46.9% for developed economies and 53.1% for developing economies. — Chart 1-18: Outward FDI by Region

Chart 1-19: Outward FDI: Top Ten Countries and Regions (Billion dollars %)
Ranking in 2020	Country/Region	Change in Ranking	2019	2020	2020 YoY	2020 Share
1	China		137	133	-2.9	18.0
2	Luxembourg		34	127	268.7	17.2
3	Japan		227	116	-49.0	15.6
4	Hong Kong, China		53	102	92.1	13.8
5	United States		94	93	-0.8	12.5
6	Canada		79	49	-38.3	6.6
7	France		39	44	14.3	6.0
8	Germany		139	35	-74.9	4.7
9	Korea, Republic of		35	32	-7.8	4.4
10	Singapore		51	32	-36.0	4.4
—	World	—	1,220	740	-39.4	100.0

Note: "World" and the ranking exclude financial centers in the Caribbean.
Source: "World Investment Report 2021" (UNCTAD)

Turning eyes to other major countries and regions, China was the largest investor country at $133 billion, down 2.9% from the previous year. According to UNCTAD, investment activities were particularly robust in countries and regions surrounding One Way One Road, despite tighter investment regulations in the U.S. and other countries. As for the share of global outward FDI by major countries and regions, the top five countries and regions accounted for approximately 80%, manifesting a concentration of investment sources in some areas.