THE OECD data and analysis show that global Foreign Direct Investment (FDI) slowed down in 2022, but new investment showed modest growth.  Key findings include that:  

1. Global FDI flows dropped by 24% in 2022, to USD 1 286 billion, after large withdrawals of capital by a telecommunication MNE operating in Luxembourg. Excluding Luxembourg, global FDI flows declined by 5% in 2022 compared to the previous year.

2. Major FDI recipients recorded lower FDI flows in 2022, particularly China and the United States partly as a result of reduced new investment activity.

3. The United States and China were the top two FDI destinations worldwide in 2022, followed by Brazil, receiving peak level of inflows partly due to increased reinvestment of earnings.

4. FDI inflows in OECD economies fell by 26% due to disinvestments from Luxembourg, which were in part offset by large increases in Switzerland and the United Kingdom. FDI inflows in non-OECD G20 economies dropped by 38%, mainly reflecting decreases in China.

5. FDI outflows from OECD and non-OECD G20 countries plunged by 14% and 28%, respectively.

6. Cross-border M&A activity slowed down with fewer deals being concluded in 2022, possibly in response to a tighter financial environment and continued geopolitical challenges.