Foreign direct investment (FDI) from Japan - statistics & facts
Foreign direct investment (FDI) is a type of investment made with the aim of acquiring a lasting interest in a company located in another country. While inward FDI flows to Japan have remained low, the country has been among the leading source economies of FDI worldwide in the past years.
Japanese FDI outflows reached a record high in 2019. The sharp increase in outward FDI that year could mainly be attributed to an increase in merger and acquisition (M&A) activity driven by a deal of the Japanese company Takeda Pharmaceutical.
Development of Japanese outward FDI
Japan was the second-largest investor of FDI globally in 2023. FDI outflows amounted to 184 billion U.S. dollars, up 14 percent from the previous year. Japan’s outward FDI position rose to two trillion dollars, the sixth largest in the world. This was equal to 48.1 percent of its gross domestic product (GDP). By comparison, inward FDI stocks accounted for roughly five percent of the GDP.Japanese FDI outflows reached a record high in 2019. The sharp increase in outward FDI that year could mainly be attributed to an increase in merger and acquisition (M&A) activity driven by a deal of the Japanese company Takeda Pharmaceutical.
