JETRO Invest Japan Report 2022
Chapter1. FDI Trends in the World and Japan Section1. Global Inward FDI Flow in 2021

According to the United Nations Conference on Trade and Development (UNCTAD), global inward FDI in 2021 increased 64.3% from the previous year to 1,582.3 billion dollars (based on the directional principle). In 2020, it marked the lowest level since 2005, but in 2021, it returned to the level before the spread of COVID-19. By country and region, developed economies experienced a triple-digit increase,while developing economies saw a double-digit growth, and Japan recorded a 130.3% increase (Chart 1-1).

Chart 1-1: Trends in Global Inward FDI Flow (Million US dollars, %)
Country/Region	2019	2020	2021	2021 Growth rate (YoY)
World	1,480,626	963,139	1,582,310	64.3
Developed economies	764,456	319,190	745,739	133.6
Japan	13,755	10,703	24,652	130.3
Korea	9,634	8,765	16,820	91.9
Israel	17,363	24,283	29,615	22
Europe	404,756	80,786	219,033	171.1
EU	401,677	209,509	137,541	-34.4
Germany	52,665	64,589	31,267	-51.6
France	28,363	4,870	14,193	191.4
UK	45,454	18,194	27,561	51.5
North America	275,257	174,004	427,052	145.4
US	225,108	150,828	367,376	143.6
Canada	50,149	23,176	59,676	157.5
Developing Economies	84,442	64,400	99,655	54.7
East Asia	232,339	284,726	328,918	15.5
China	141,225	149,342	180,957	21.2
Hong Kong	73,714	134,710	140,696	4.4

Note: Figure for Japan in the chart are calculated by UNCTAD based on the directional principle. The data do not correspond to those in Chart 1-2. See column.
Source: UNCTAD data. Classification is also as defined by UNCTAD.

[Column] Measurement Principles

1. Asset and Liability Principle

Investments from Japan to overseas are classified as "assets" (outward FDI), while those from overseas to Japan are classified as "liabilities" (inward FDI).
In the chart below, "(1) Investment" is recorded as inward FDI.

2. Directional Principle

Investments of a Japanese parent company in an overseas affiliate are classified as "outward FDI," and investments of an overseas parent company in a Japanese affiliate are classified as "inward FDI."
In the chart below, "(1) Investment" is not recorded as inward FDI but is regarded as a recovery of the Japanese parent company’s investment (negative outward FDI).