Countries That Attract the Most Foreign Investment
More than $2 trillion in foreign funds were invested around the world in 2016, according to the World Bank. This week, global leaders have gathered in Austria for the World Bank’s Investment Competitiveness Forum to discuss what drives foreign investment, why it is important for development and strategies to maximize benefits. According to a survey of 750 multinational investors and corporate executives in a report released at the forum, “political stability and security along with a stable legal and regulatory environment” far outweigh considerations of tax rates and labor costs when deciding where to commit foreign investment capital.
Some countries, however, have already established a reputation for investment competitiveness. These are the top 10 countries that received the most foreign direct investment inflows in 2016, according to the World Bank.
10. France
France received net foreign direct investment of $42.3 billion in 2016. Paris hosts the second most multinational headquarters, after Tokyo.
9. India
India received $44.4 billion in net foreign direct investment in 2016. Investments in the real estate and infrastructure sector from Canada helped India become the fastest growing investment region, according to a report from KPMG.
8. Germany
Foreign direct investment in Germany reached $52.5 billion in 2016. An Ernst & Young study notes that Germany is particularly attractive for its strong infrastructure and qualified workforce, with the transportation and automotive industries driving growth.
7. Singapore
Singapore received $61.6 billion in foreign direct investment in 2016. The country boasts a streamlined interface with the government, TradeNet, that processes 99 percent of permits in less than 10 minutes and a recently revamped intellectual property regime program that offers incentives for foreign research and development.
6. Brazil
Brazil attracted $78.9 billion in net foreign direct investment in 2016. Building its way back from a deep recession and corruption scandal, Brazil’s President Michel Temer introduced in 2017 an investment partnership program to oversee $14 billion in infrastructure concession plans across roadways, ports, railways and power lines that areexpected to help make the country more attractive to investors.
5. Ireland
Foreign direct investment reached $79.2 billion in Ireland in 2016. IBM’s 2017 Global Locations Trend report named Ireland as the No. 1 country for high-value foreign investment for the sixth year in a row.
4. Netherlands
The Netherlands received $80.8 billion in net foreign direct investment in 2016. About half of the country’s gross domestic product is derived internationally, according to the Netherlands Foreign Investment Agency.
3. China
Foreign direct investment in Asian giant China reached $170.6 billion in 2016. Foreign investment has reached an all-time high in the country, with nearly 2,500 new foreign-invested enterprises approved each month on average.
2. U.K.
The U.K. received $299.7 billion in net foreign direct investment in 2016. While only 1.2 percent of companies in the U.K. received foreign direct investment in 2014, these companies accounted for 18 percent of employment and 33 percent of wages, according to the British Office for National Statistics.
1. U.S.
Net foreign direct investment in the U.S. reached $479.4 billion in 2016. The U.K. and Canada were the largest sources of foreign direct investment in 2016, but investments from Thailand and Argentina are the fastest growing, according to SelectUSA, a program within the U.S. Department of Commerce’s International Trade Administration.
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