Where Capital Flows: FDI Inflows and Outflows
- Jul 16
- 2 min read
Foreign Direct Investment (FDI) refers to the investment made by an individual or company from one nation into a business located in another nation, with the intention of obtaining substantial control or influence over that enterprise. Understanding where FDI capital flowed in 2025 helps decode where major investments are taking place.
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In general, FDI inflows are viewed positively due to their contribution towards economic growth, while FDI outflows are often seen as less favorable since they represent capital moving out of the country.
US is the largest source of FDI Inflows and Outflows
The USA remains as the world’s largest source of FDI inflows (and outflows) in 2024, followed by Singapore, Hong Kong and China. In fact, an interesting entry in the top 5 is Luxembourg that received an FDI inflow of $106bn in 2024.
Among the 8 economies listed here, Singapore is the highest beneficiary of FDI, with inflows towering to $143bn in comparison to outflows of $55bn.
Country | Inflows | Outflows | Net Inflows (Inflows - Outflows) |
USA | $279 bn | $266 bn | $13 bn |
Singapore | $143 bn | $55 bn | $88 bn |
Hong Kong | $126 bn | $87 bn | $39 bn |
China | $116 bn | $163 bn | $(47 bn) |
Canada | $64 bn | $86 bn | $(22 bn) |
UAE | $46 bn | $23 bn | $23 bn |
India | $28 bn | $24 bn | $4 bn |
Italy | $25 bn | $37 bn | $(12 bn) |
An important point to consider is that UNCTAD’s reported figures for foreign direct investment (FDI) inflows and outflows may not always align with a country’s actual data. This discrepancy often arises from variations in definitions, measurement approaches, and estimation techniques. On a net basis (Inflows - Outflows), here are the FDI inflows for major economies:
Singapore: $88 bn
Hong Kong: $39 bn
UAE: $23 bn
USA: $13 bn
India: $4 bn
Italy: ($12bn)
Canada: ($22bn)
China: ($47bn)
Also read: Mapped: India Exports by State
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