Developing economies of Asia home to 60% of world’s megaprojects, latest World Investment Report shows
The World Investment Report 2024, published today by the UN Trade and Development (UNCTAD), spotlights a significant increase in greenfield foreign direct investment (FDI) to developing economies in Asia, WAM reports.
In 2023, these economies experienced a 44% rise in the overall value of greenfield investment announcements and a 22% increase in the number of such announcements, where companies establish or expand their operations overseas.
More broadly, while foreign investment flows to developing Asia receded in 2023, they remained high at $621 billion.
The continent, led by East and Southeast Asia, continued to be the world’s largest recipient of FDI, accounting for nearly half of global inflows.
Cross-border mergers and acquisitions (M&A), which usually constitute 10% to 15% of foreign investments in developing Asia, declined by almost $30 billion to $57 billion in 2023. This decline accounted for about half of the total drop in FDI inflows to the region.
China and its Hong Kong Special Administrative Region (SAR) continue to be the largest investors in the region by total FDI stock, followed by the United States, Japan, and Singapore.
Across developing Asia, investment in sectors linked to the Sustainable Development Goals rose modestly.
The number of announced greenfield projects in these sectors grew by 30% to 1,225 projects with a 54% rise in value, notably in renewable energy, transport, and telecommunication.
By contrast, the number of international projects finance deals dipped by 17%, partly offsetting gains in greenfield FDI for sustainable development.
