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Two new reports released separately last Wednesday offer some overlap and some divergence in perspectives on the global economy. From the World Economic Forum Annual Meeting 2024 that took place last week in Davos-Klosters, the WEF released “The Future of Growth Report 2024,” which “proposes a new way for assessing economic growth that balances efficiency with long-term sustainability, resilience and equity, as well as innovation for the future, aligning with both global and national priorities,” said WEF Managing Director Saadia Zahidi.
Meanwhile, four-and-a-half hours to the west by train in Geneva, UNCTAD released its 46th Global Investment Trends Monitor. Among its findings:
- “Global foreign direct investment (FDI) flows in 2023, at an estimated $1.37 trillion, showed a marginal increase (+3%) over 2022,” with the decline in most countries masked by increases in “European conduit economies” such as Luxembourg. Though the U.S. was the largest FDI recipient, “FDI inflows in 2023 were down by 3%, greenfield project numbers by 2% and project finance deals by 5%.”
- “ASEAN, normally an engine of FDI growth, reported a 16% decline in FDI. However, the attractiveness of the region for manufacturing investment was underlined by a 37% jump in greenfield project announcements, with strong growth in Viet Nam, Thailand, Indonesia, Malaysia, the Philippines and Cambodia.”
- “Mexico reported an increase in FDI, as well as a further increase in new greenfield project announcements, solidifying its position among the top global recipients.”
- “In West Asia, FDI remained stable (+2%) due to continued buoyant investment in the United Arab Emirates, which saw greenfield announcements rise by 28% to the second highest number after the United States. Greenfield numbers also jumped in Saudi Arabia, by 63%.”
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