JETRO Invest Japan Report 2023
Chapter1. Inward FDI Trends in the World Section 1. Global Inward FDI Flow in 2022
According to the United Nations Conference on Trade and Development (UNCTAD), global FDI in 2022 decreased by 12.4% from the previous year to 1,294.7 billion dollars (based on the directional principle). Although it recovered in 2021 to the level before the spread of COVID-19, the recovery trend did not stabilize or expand in 2022. As a special note by country and region, of developed economies, Europe experienced a significant decrease and turned into an outflow. On the other hand, it increased in Japan by 31.9% (Chart 1-1).
| Country/Region | 2020 | 2021 | 2022 |
2022 Growth rate (YoY) |
|---|---|---|---|---|
| World | 961,983 | 1,478,137 | 1,294,738 | -12.4 |
| Developed Economies | 315,461 | 597,243 | 378,320 | -36.7 |
 Japan
|
10,703 | 24,652 | 32,509 | 31.9 |
|
Korea
|
8,765 | 22,060 | 17,996 | -18.4 |
|
Israel
|
23,109 | 21,486 | 27,760 | 29.2 |
|
Europe
|
132,537 | 50,711 | -106,770 | * |
|
European Union
|
115,623 | 152,381 | -124,948 | * |
|
Germany
|
56,204 | 46,468 | 11,053 | -76.2 |
|
France
|
11,359 | 30,885 | 36,413 | 17.9 |
|
United Kingdom
|
58,237 | -71,174 | 14,093 | * |
|
Russia
|
10,410 | 38,639 | -18,681 | * |
|
North America
|
122,766 | 453,439 | 337,690 | -25.5 |
|
United States
|
95,882 | 387,780 | 285,057 | -26.5 |
| Developing Economies | 646,522 | 880,894 | 916,418 | 4.0 |
|
East Asia
|
284,850 | 333,522 | 323,561 | -3.0 |
|
China
|
149,342 | 180,957 | 189,132 | 4.5 |
|
Hong Kong
|
134,710 | 140,186 | 117,725 | -16.0 |
|
Singapore
|
72,903 | 131,151 | 141,211 | 7.7 |
[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, " 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, " Investment" is not recorded as inward FDI but is regarded as a recovery of the Japanese parent company's investment (negative outward FDI).
![Compiled from the Bank of Japan website and the JETRO World Trade and Investment Report.Asset and Liability Principle. 1. Investments from Japan to overseas are classified as [assets] (outward FDI), while those from overseas to Japan are classified as [liabilities] (inward FDI). [Investments] are accounted for as inward investments. 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.] [Investment] is not recorded as inward investment, but is regarded as a collection of the investment of the parent company in Japan (negative outward investment).](/ext_images/en/invest/img/investment_environment/ijre/report2023/ch1/1_column.png)
Source: Bank of Japan (BOJ) website, JETRO Global Trade and Investment Report
JETRO Invest Japan Report 2023
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Section10.
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