Foreign Investment Recovers to Pre-COVID Levels
Global foreign direct investment (FDI) has rebounded to nearly its pre-pandemic levels, reports Investment Monitor. The number of greenfield FDI projects rose 18% last year, as economies reopened and vaccinations became more widespread. But FDI will very likely fall in 2022, as the Ukraine conflict, supply chain disruptions, and inflation impact investment levels.
Twenty-six of 34 global FDI sectors experienced yearly growth in 2021. Software and computer services remained the leading sector, with 2,886 projects. Communications and media also grew quickly, almost doubling its number of projects in 2021 compared to 2020. 5G, points of presence and edge locations, and continued data center construction made it the third-largest FDI sector.
Renewable energy was one of the largest growth sectors with 36% more projects than 2020, a breakthrough that’s been on the horizon for several years. Investment in all sectors related to sustainable development goals rose by 39% in 2021, as governments and stakeholders prioritize sustainability.