Australia amassed over $45 billion in FDI in 2022. Australia ranks in fifth place among the countries that benefited most from foreign investment, accumulating a staggering figure of over $45 billion in 2022 – 3.13% of the country’s GDP. Within the study the United States were the only other country that received more ($148 billion), proving that Australia remains popular in the eyes of foreign investors.
Fiona Cincotta financial market expert at City Index, comments: “Australia has proven to be a powerhouse for foreign investment. This is due to Australia’s incredibly strong and stable economy that is ever-growing. Its highly developed financial capabilities coupled with its enormous mining and mineral sector are just a few of the contributing factors that make Australia such an exciting prospect for foreign investment. As well as its ability to monetize tourism in the most effective ways possible, bringing in millions yearly. ”
Chile’s FDI inflows make up over 4% of its GDP
Chile benefited the most from foreign investment in 2022, amassing $11.4 billion in foreign direct investment — 4.41% of the country’s GDP. This recent success could be due to the appointment of a new president, Gustavo Petro, who advocates for the development of more sustainable energy. This is a major attraction for any business looking to invest, as in the last seven years alone, Chile brought in $20.8 billion in clean energy investment.
Perhaps even more impressively, Chile grossed $1.6 billion more than South American neighbours Colombia (9th) which generated $9.8 billion in foreign direct investment. This is 2.58% of the country’s GDP.
Fiona Cincotta, financial market expert at City Index, comments: “in 2021, after the global pandemic had struck, economies were hit tremendously harshly, however, Chile managed to overcome this obstacle and create a thriving economy. This is due to its strong foreign investment in key sectors, such as wholesale trade and the manufacturing industry. This stems from the prospect of new changes brought in by the new president, Gustavo Petro, who is leading the country in the direction of sustainability, by opting to replace environmentally damaging processes that use oil and gas. This is a big attraction for any country looking to invest overseas.”
Sweden generated over $22.6 billion in FDI in 2022
Ranking in second place is Sweden, which generated over $22.6 billion in foreign investment in 2022, 3.88% of its GDP. Despite bordering Sweden, Norway (22nd) only generated $3.9 billion in FDI, which is just 0.79% of its GDP. The two Scandinavian states are situated beside one another but boast very different foreign investment opportunities.
Fiona Cincotta, financial market expert at City Index, comments: “Sweden has seen substantial growth over the past decade, boasting low corporate tax, coupled with thriving tech and pharmaceutical sectors to create an ideal recipe for foreign investment. Potentially the most appealing to foreign investors is Sweden’s consistent ability to produce tech unicorns, with the likes of Spotify, Klarna and Mojang all originating in the country. On the other hand, Norway’s main exports are made up of environmental and agricultural sectors such as fishing, forestry, hydropower and petroleum, which allow it to be successful alongside other Scandinavian nations without the damage of competition.”
Israel ranks third with 2022 FDI inflows making up 3.7% of GDP
In third place is Israel, which accumulated more than $11.6 billion in foreign investment – 3.70% of its GDP. Israel’s closest geographical competition is Turkey (23rd) which managed to amass $5.4 billion in foreign investment, which is only 0.58% of their GDP.
Fiona Cincotta, financial market expert at City Index, comments: “Israel’s foreign investment has been pivotal in contributing to its growing economy. The nation is an attractive prospect for foreign investors as it offers an ever-growing research and development sector as well as a well-established technology sector. These positive attributes have allowed Israel to appeal to the likes of the United States and the Netherlands, who both are large contributors to Israel’s foreign investment. ”
The top 10 is completed by Lithuania, which brought in $1.2 billion in foreign investment, which is 2.57% of the country’s GDP.
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