JETRO Invest Japan Report 2024
Chapter1. Global Trends in Inward FDI Section1. Global Inward FDI Flow in 2023

Global economic stagnation and heightened geopolitical tensions discourages inward FDI

According to the United Nations Conference on Trade and Development (UNCTAD), global inward FDI in 2023 declined for the second consecutive year, down 1.8% from the previous year to 1,331.8 billion US dollars (based on the directional principle) (Chart 1-1). The global economic slowdown, rising geopolitical tensions, and rising interest rates, among other factors, may have contributed to the restraints. In particular, the U.K. experienced a significant decrease from the previous year, resulting in a net withdrawal. Europe as a whole, including EU member states, saw a turnaround from the significant withdrawal in the previous year to an inflow surplus. Japan ranked 21st in the world, with 21.4 billion US dollars, down 37.3% from the previous year. (Chart 1-2).

Chart 1-1: Trends in Global Inward FDI Flow (Million US dollars, %)
Country/Region	2021	2022	2023	2023 Growth rate (YoY)
World	1,621,808	1,355,749	1,331,813	-1.8
Developed Economies	731,843	426,198	464,397	9.0
Japan	34,294	34,194	21,433	-37.3
Israel	18,950	23,031	16,422	-28.7
Korea	22,060	25,045	15,178	-39.4
Europe	178,748	-105,878	16,493	*
European Union	266,502	-84,831	58,645	*
France	34,109	75,979	42,032	-44.7
Germany	51,218	27,411	36,698	33.9
United Kingdom	-71,174	14,912	-89,247	*
Russia	38,639	-15,205	8,364	*
North America	449,818	378,527	361,271	-4.6
United States	389,436	332,352	310,947	-6.4
Developing Economies	889,965	929,551	867,417	-6.7
East Asia	334,030	315,115	286,214	-9.2
China	180,957	189,132	163,253	-13.7
Hong Kong	140,186	109,685	112,676	2.7
Southeast Asia	208,447	223,134	226,317	1.4
Singapore	126,674	141,118	159,670	13.1

Note:

The figure for "Japan" in the table is calculated by UNCTAD using the directional principle.
The data do not correspond to those in Chart 2-1 (asset and liability principle).
Items marked with * in the table are not shown as one of the comparative data is negative.
Classification is as defined by UNCTAD.
Source:

Based on UNCTAD data.

Chart 1-2: Top 10 Countries/Regions Receiving Inward FDI in 2023 (Million US dollars, %)
Ranking	Country/Region	2023	2023 Growth rate (YoY)
1	United States	310,947	-6.4
2	China	163,253	-13.7
3	Singapore	159,670	13.1
4	Hong Kong	112,676	2.7
5	Brazil	65,897	-10.2
6	Canada	50,324	9.0
7	France	42,032	-44.7
8	Germany	36,698	33.9
9	Mexico	36,058	-0.7
10	Spain	35,914	-20.0
21	Japan	21,433	-37.3

Note:

"Japan" in the table is calculated by UNCTAD using the directional principle. The data do not correspond to those in Chart 2-1 (asset and liability principle).
Source:

Based on UNCTAD data.

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