Q3 Overseas Direct Investment Down 6.0%... "Investment Shrinks Due to Global Economic Uncertainty and High Interest Rates"

3rd Quarter Overseas Direct Investment Trends
Negative Trend Continues for Third Consecutive Quarter This Year

Overseas direct investment (ODI) in the third quarter (July to September) recorded $14.19 billion, down 6.0% from the same period last year. This marks the third consecutive quarter of negative growth this year. Investment sentiment was dampened due to a combination of factors, including prolonged high interest rates amid ongoing global economic uncertainties.

According to the '2024 Third Quarter Overseas Direct Investment Trends' released by the Ministry of Economy and Finance on the 13th, ODI for the third quarter totaled $14.19 billion based on total investment amount, a 6.0% decrease. Net investment, calculated by subtracting recoveries from total investment, was $9.43 billion, down 26.6% compared to $12.85 billion in the same period last year.

The decline in ODI began in the fourth quarter of 2022. In that quarter, total investment amounted to $15.1 billion, a 51.2% decrease from the same period the previous year. Subsequently, the first (-37.3%), second (-18.9%), and third (-18.4%) quarters of last year each showed double-digit declines. Although there was a brief rebound in the fourth quarter (7.8%), the trend turned negative again from the first quarter of this year (-7.5%). The second quarter also recorded a 2.7% decrease to $15.76 billion.

In the third quarter, the decline widened compared to the second quarter (-2.7%). The Ministry of Economy and Finance stated, "This contraction is attributed to a combination of factors including global economic uncertainty, sustained high interest rates, and geopolitical elements."

By region, investment in North America ($5.13 billion) decreased compared to the same period last year, while Europe ($3.6 billion), Asia ($2.9 billion), and Latin America ($2.13 billion) saw increases in that order. By country, the United States ($3.79 billion), the Cayman Islands ($1.66 billion), Luxembourg ($1.41 billion), and Canada ($1.33 billion) ranked highest.

By industry, investment amounts were led by finance and insurance ($6.06 billion), manufacturing ($3.97 billion), mining ($1.29 billion), and information and communications ($850 million). Despite the overall decrease in total investment compared to the same period last year, mining and information and communications sectors saw increased investment. The Ministry of Economy and Finance analyzed, "Mining investment increased compared to the same period last year due to broad resource demand centered in the North American region," and "Investment in European regions such as Poland also showed an increase compared to the same period last year."

This content was produced with the assistance of AI translation services.