THE OECD data analysis has shown that global Foreign Direct Investment (FDI) rebounded in the first half of 2021 to reach USD 870 billion, exceeding pre-pandemic levels by 43% and more than double those of the second half of 2020.
Key findings include that:
- In the OECD area, FDI inflows more than doubled to USD 421 billion, as a result of significant growth in the vast majority of OECD countries. In the first half of 2021, China was the major FDI recipient worldwide, followed by the United States and the United Kingdom.
- Inflows to the OECD area were twice as high in the same period, and 30% up from the same values recorded in the first half of 2019. Outflows from the OECD area increased four-fold from historically low levels in 2020, and were 75% higher than in the first six months of 2019.
- FDI inflows to G20 non-OECD countries increased by 12% and the rebound was widely spread, except for India, which already started from high levels in the second half of 2020. FDI outflows increased by 24%.
- The United States, China and the United Kingdom saw the biggest increase, with more than USD 20 billion rise in their FDI inflows.
- OECD earnings on inward FDI increased by 30% influenced by record-high levels in the United States and widespread increases in many other countries. Consecutive increases in reinvested earnings, in particular in the United States, further contributed to the recovery in total FDI flows.
- Completed cross-border M&A deals overcame pre-pandemic levels in advanced economies, signalling renewed investor confidence in deal-making. New investment projects in advanced economies were also up by 9% from the second half of 2020. However, cross-border investment activity in emerging markets and developing economies continued to decline.
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