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).

Chart 1-1: Trends in Global Inward FDI Flow (Million US dollars, %)
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

Note: Figures for Japan in the chart are calculated by UNCTAD based on the directional principle. The data do not correspond to those in Chart 2-1. See "Measurement Principles." The marks of * in the chart show that one of the comparison data is negative and therefore growth rate is not applicable.
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, " 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).

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