Context: Recently, UNCTAD released the World Investment Report 2023.
About World Investment Report:
- The World Investment Report focuses on trends in foreign direct investment (FDI) worldwide, at the regional and country levels and emerging measures to improve its contribution to development.
- It also provides an analysis of global value chains and the operations of multinational enterprises, with special attention to their development implications.
- India and the Association of Southeast Asian Nations (ASEAN) were the top recipients, with a 10% and 5% increase respectively. Asia accounted for over 50% of global FDI.
- The FDI growth in developing countries was concentrated in a few large emerging economies, with India, China, Singapore, Hong Kong, and the United Arab Emirates accounting for nearly 80% of FDI flows to the region.
- India saw a 10% increase in FDI, making it the third-largest host country for greenfield project announcements and the second-largest for international project finance deals.
- Singapore was the largest recipient of FDI in the Southeast Asian region.
- The report highlights the widening investment deficit in developing countries as they strive to achieve the Sustainable Development Goals (SDGs), particularly in energy, water, and transport infrastructure.
The World Investment Report 2023 calls for a compact outlining priority actions, including financing mechanisms and investment policies, to ensure sustainable energy for all. The report also provides an analysis of FDI trends, rankings of transnational corporations, policy recommendations, and statistical data at the country level.