Trend Developing regions diverge in capital mix while Southeast Asia's six concentrate on FDI
Summary
This trend describes developing regions moving in different directions in the kind of capital they attract. Comparing 2017 to 2020 with 2021 to 2024, developing Europe shifted toward bank-related and other financing, which reached 61.4 percent of its inflows. Latin America and the Caribbean kept a fairly stable mix anchored in foreign direct investment. The six Southeast Asian growth markets raised their FDI share from 57.4 percent to 72.5 percent. Sub-Saharan Africa and the Middle East and Central Asia also became more concentrated in FDI, so capital mix is increasingly a regional rather than a uniform pattern.
Classification
Main topicMacroeconomy & Finance
Region menusGlobal
Impactscope:global
Time horizon0-3 years (2026-07-26)
Published2026-04
Last updated2026-09-30 12:56 KST
Evidence 1
- Global Opportunity Index 2026: Growth Markets in Southeast Asia Milken Institute page=24;section=Recent Trends in Cross-Border Investment in Growth Markets in Southeast Asia / Global and Regional Benchmarks 2026-04 accessed 2026-07-26
Observed signals 4
- SignalFDI rose to 72.5% of inflows to the six as portfolio share fell from 21.5% to 8.5%
- SignalLao PDR's FDI share rose as its absolute value slipped and bank flows went negative for three years
- SignalMalaysia and the Philippines saw FDI shares fall while their absolute FDI rose
- SignalVietnam's FDI held at or above 53.0% of inflows while other components swung
Part of issues 1
- IssueFDI dominance coexists with sharply volatile portfolio and bank-related flows2 trends · 5 signals
Relation types: constitutes · supports
Public id: fm-0dadf1f2aa0c
