Andrea F. Presbitero (economist at the IMF Research Department’s Multilateral Surveillance Division) will present a chapter from the IMF’s World Economic Outlook (April 2023) on foreign direct investment fragmentation, and its implications for the global economy.
Supply-chain disruptions and rising geopolitical tensions have brought the risks, costs and potential benefits of geoeconomic fragmentation (GEF) to the centre of the policy debate. We are delighted to welcome Andrea F. Presbitero to present a chapter of the International Monetary Fund's (IMF) World Economic Outlook, which studies how GEF can reshape the geography of foreign direct investment (FDI) and, in turn, how FDI fragmentation can affect the global economy.
The recent slowdown of FDI has been characterised by divergent patterns across host countries, with flows increasingly concentrated among geopolitically aligned countries, particularly in strategic sectors. Looking forward, several emerging and developing economies are highly vulnerable to FDI relocation, given their reliance on FDI from countries which often are geopolitically distant. In the long-run, FDI fragmentation due to the emergence of geopolitical blocs can generate large output losses. These may be especially severe for emerging and developing economies facing heightened restrictions from advanced economies, which are the major sources of FDI.
Andrea F. Presbitero is an Economist in the Research Department of the International Monetary Fund, CEPR Research Fellow in the International Macroeconomics and Finance programme, and Associate Fellow at Johns Hopkins University, SAIS Europe. He has been Assistant Professor at the Università Politecnica delle Marche and Associate Professor of Economics at the Johns Hopkins University School of Advanced International Studies. He is an applied economist whose research covers financial intermediation, development finance, and international finance. He serves as associate editor of the IMF Economic Review, Economia (LACEA), and the Journal of Financial Stability.
The event is open to all and will be held in hybrid format. To join and participate in the Q&A, please register.