Global FDI Fell by 18% in 2017
Economy
New analysis from the OECD has revealed an 18 percent drop in global foreign direct investment (FDI) flows from 2016 to 2017. The decrease, comparable to 1.8 percent of global GDP, brings FDI back down to a similar level as seen between 2012 and 2014. According to the OECD, the high levels in 2015 and 2016 were primarily due to financial and corporate restructuring and last year, the chance of upcoming tax reform. decreased the desire for such transactions. going forward, the U.S. tax reform is expected to lead to a further reduction in FDI as U.S. companies start to bring cash back on shore, taking advantage of the opportunity provided by the new one-off rules.
