Shifting Shores: FDI Relocations and Political Risk
Foreign direct investment (FDI) has long been a driver of prosperity in developing nations but has slowed in recent years, with an FDI-to-GDP ratio of just 1.7% from 2019 to 2023, the lowest in decades. Two emerging trends—friend-shoring and near-shoring—are reshaping FDI flows, prioritizing geopolitical alignment and proximity.