Globalisation


For decades, European companies have been used to investing in developing countries, with China and India both prime targets for foreign direct investment (FDI). But now things are changing. Traditional FDI hotspots are being transformed, with potentially revolutionary consequences for the global economy. Nikki Peach talks to Mike Pfi ster, senior adviser for investment and sustainable development at the Organisation for Economic Co-operation and Development (OECD), to learn which way global FDI is going, where investors should keep an eye on especially – and whether it presages a broader shift in where money goes.


tumultuous two and a half years have scarpered the plans, or at least the predictions, of seasoned investors the


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world over. With economies brought to their knees by a pandemic and a fluctuating global recovery rate, the future of foreign investment has become anything but predictable. Yet amid these upheavals, global FDI was up 77% – to an estimated $1.65tn in 2021 compared with 2020. To put it another way, it has already surpassed pre-


Covid levels. While it’s a stretch to suggest such a strong rebound was inevitable, the outlook for global FDI in 2022 seems to be on firmer footing – piquing the interest of European investors, particularly in infrastructure sectors. “After a crisis, investment usually goes up quite quickly as people want to spend money again,” Mike Pfister, senior adviser at the OECD, tells me. “It’s usually a good time to invest.” Fair enough – but that hardly means the trajectory for global FDI is straightforward. According to a


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Finance Director Europe / www.ns-businesshub.com


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