FDI plunges worldwide: Deglobalization rises sharply by 10 times in 2017 vs 2016

I have argued at least since 2014 about a massive new global mega trend - "deglobalization”.

This trend is accelerating rapidly with worldwide factory closures, bank closures, withdrawal of companies from various countries, bans including on trade and travel on multiple other nations, rising tariffs and trade barriers, new regulations including on visas, education etc.

Now even the data from UN is confirming the same.

In 2017, the global FDI dropped a massive 23.4%, a rise of 10 times just when compared to 2016.

In 2016, Global FDI dropped 2.8% as compared to 2015.

As cash flows worldwide dwindle and investors withdraw from investing abroad, the joblessness and impact on service providers such as banks, customs, tax revenues, real estate prices etc will be felt by millions around the world.

Global foreign direct investment flows fell sharply in 2017

Canada:

Foreign Direct Investment In Canada Fell 26% In 2017; Lowest Level In Nearly A Decade

India:

Not only FDI declined 10.3% in India but outflows doubled (a rise of 100%) to USD 11bn creating a double whammy.

FDI into India declined in 2017, outflows more than doubled: UN report

Saudi Arabia:

Saudi incoming FDI plunged a massive 80.9%.

Foreign investment in Saudi at 14-year low in blow to reforms

Vietnam:

Last year in 2017, Vietnam saw a rise of 11.9%, however, the first 5 months of 2018, they have seen a decline of 18.4%.

Vietnam unfazed by FDI plunge

United Arab Emirates:

After seeing a 22.7% plunge in 2015, UAE saw a decent and healthy rise in FDI in 2017 of 7.8% to USD 10.3bn . However, UAE still has been unable to breach the peak of 2006 (USD 12bn) and 2007 (USD 14bn).

Select country FDI increases for 2017, per UN:

China (the giant) : 2% (healthy increase, steady as she goes).

Philippines: 37.7% increase (quadrupled since 2012 – rock star of the world!).

Indonesia: 488.2% (data could be misleading due to tax amnesty).

France : 41.6% increase (surprising!).

Cyprus : 200% (due to passport).

St Kitts: 50% increase (due to passport)

Antigua: 25.5% increase (due to passport).

Oman: 11.1% increase (taking business away from UAE and receiving from China).

Qatar: 27.4% increase (taking business away from UAE)

Sri Lanka: 53.3% increase (boom town!).

Pakistan: 13.2% increase (boom town!).

 Iran: 48.8% increase (massive boom town, more gains if regime changes in 2018!).

Costa Rica: 18.3% increase

El Salvador : 127.9% increase

Argentina: 263.7% increase

Select country FDI declines for 2017, per UN:

USA: 39.8% decline

Canada: 35% decline

UK: 92.3% decline

Finland: 88.6% decline

Netherlands: 32.4% decline

Luxembourg: 85.3% decline

Italy: 23.2% decline

Ukraine : 32.9% decline

Kazakhstan: 42.8% decline

Venezuela: went negative, 106.4% decline

Turkey: 16.1% decline

Singapore: 19.9% decline

Malaysia : 15.8% decline

India: 10.3% decline

Reference:

World Investment Report: Annex Tables