AS per OECD latest report, global FDI flows dropped by 7% in 2023, to USD 1 364 billion, continuing on a declining trend and remaining below pre-pandemic levels for the second consecutive year.

Downswings were recorded in 2023 for more than two-thirds of OECD economies and other countries, in particular the People’s Republic of China (hereafter 'China'), who received record-low FDI flows in a general context of ongoing geopolitical tensions and high interest rates. 

Overall, FDI flows in non-OECD G20 economies dropped by 46% in 2023.  Despite this general downward trend, the United States, Brazil and Canada were the top three FDI destinations worldwide in 2023.

OECD equity flows remained below any level recorded since 2005, partly reflecting a slowdown in new investment activity. Cross-border Mergers and Acquisitions (M&A) activity continued on a downward trend, hitting a ten-year record low in 2023, as the overall economic and geopolitical environment kept deteriorating.  

In general, greenfield investment activity stalled in 2023, yet trends diverged between advanced economies and emerging and developing economies (EMDEs). Capital expenditures and the number of announced projects dropped by around 20% in advanced economies, while they were up by 21% and 9% in EMDEs, respectively