Global FDI flows to Asia-Pacific continue to recover to pre-pandemic levels

Global FDI flows to Asia-Pacific continue to recover to pre-pandemic levels

This aerial photo taken on Dec 25, 2022 shows cranes and shipping containers at Yantian Port in Shenzhen, China's southern Guangdong province. PHOTO AFP MANILA - Global foreign direct investment flows to the Asia-Pacific region continue to recover to pre-pandemic levels, with China remaining the top destination in Asia, according to a report released by the Asian Development Bank ADB on Tuesday.

The Asian Economic Integration Report 2023 shows that FDI grew by 64.3 percent in the Asia-Pacific region in 2021, nearly 7 percent higher than in 2019, accounting for 40 percent of global inward FDI in 2021, according to the Asian Economic Integration Report 2023.

China is the top destination for global FDI in Asia.

In 2021, outward investment from Asia recovered by 15.2 percent.

The report said that investment chapters in new mega-regional agreements, such as the Regional Comprehensive Economic Partnership, may complement efforts to promote investment, because of the uncertainty surrounding the global environment in 2021, FDI flows may subside in 2022.

Firm-level data shows Asia's resilience in attracting FDI, according to the report. Greenfield investment in the region grew by a modest 0.8 percent in 2021, after declining 40.9 percent in 2020.

Greenfield investments grew mainly in business activities, like electricity, information and communication technology, according to the report.