BANGKOK – For the first time, the Asia-Pacific region has become the largest destination and source of foreign direct investment (FDI) globally, according to a new report launched by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
The study Foreign Direct Investment Trends and Outlook in Asia and the Pacific finds that the region is expected to maintain steady inflows and outflows of FDI in 2019 and 2020. In 2018, it attracted 45% of global FDI inflows and was responsible for 52% of global outflows. Developing countries in the region attracted 40% of global FDI inflows and were responsible for 37% of global FDI outflows. Despite escalating trade tensions, inflows to China increased from $134 billion in 2017 to $139 billion, making it the largest recipient of FDI inflows to region for the third consecutive year.
The sheer scale of outward FDI in the region raises important questions about its impact on the sustainable development of source countries. The analysis in the study is expected to help policymakers maximize the potential of FDI to contribute to the 2030 Agenda for Sustainable Development and implement sustainable investment promotion strategies for both inward and outward FDI.

The report is the first brief in a new annual publication series by ESCAP called Asia-Pacific Trade and Investment Trends. This will be an annual series which draws on ESCAP’s expertise in trade and investment analysis to highlight the most important trends and forecast their impact in these two areas. The briefs will equip policymakers with the necessary information they need to make timely decisions on trade and investment policies and enable inward and outward FDI cooperation among its member States. (ESCAP news)