FDI in developing countries stood at $662billion in 2022: UNCTAD
coronavirus pandemic in 2020, the report stated. Among the developing countries in Asia, incoming FDI was highly concentrated in a few countries, namely, China (and Hong Kong), Singapore, India, and United Arab Emirates (UAE), which together accounted for about 80% of inflows into the region.
During 2022, FDI inflows to India rose by 10% on an annual basis to $49 billion, while China registered a 5% yearly growth to $189 billion. Singapore and UAE grew by 8% and 10% to $141 billion and $23 billion, respectively.
“FDI in the member States of the Association of Southeast Asian Nations (ASEAN) grew by 41%, to $222 billion," the UNCTAD’s World Investment Report 2023 said. “Flows increased also in the Regional Comprehensive Economic Partnership/RCEP (up 42%, to $580 billion), among the countries of the Gulf Cooperation Council (where they more than doubled, to $37 billion) and in member States of the South Asian Association for Regional Cooperation (up 20%, to $56 billion)," it added.
Meanwhile, developing countries, including India, which have attracted FDI in clean energy to the tune of $544 billion in 2022, need renewable energy investments to the tune of $1.7 trillion annually. The report also emphasized that developing countries face an investment gap of $2.2 trillion annually, out of a $4 trillion annual funding gap for the Sustainable Development Goals, for reaching energy transition goals.
“Debt relief is urgent to give developing countries fiscal space to make the necessary investments for a clean energy transition and to attract international private investment by lowering country risk ratings," the report added. According to the UNCTAD’s World Investment Report 2023, so far, much of the growth in international
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