FDI projects in education grew by 83.7% in 2021, with the sector showing a solid recovery from the slump caused by the Covid-19 pandemic.
The Covid-19 pandemic caused overall greenfield foreign direct investment (FDI) project numbers to decline by 17.5% in 2020. However, as the world reopened in 2021, investors reacted quickly and FDI levels rose by 18.1%, according to the Global FDI Annual Report 2022.
Most sectors witnessed a rise in their number of projects, with companies keen to make up for lost time, yet the rise is not expected to be sustained. Investment levels will likely fall again in 2022. Russia’s invasion of Ukraine has led to heightened geopolitical tensions, a global cost of living crisis, slow economic growth and continued supply chain disruptions, all of which will claw back the resurgence FDI experienced in 2021.
Education FDI rose in 2021
When it comes to greenfield FDI in education, our FDI Projects Database shows that there were 169 projects in education in 2021, up from 92 the year before. The 2021 figure was higher the 143 recorded in 2019, signalling the industry’s return to growth following the Covid-19 pandemic.