Bank of Japan’s Q4 2022 Direct Investment Income Report: Asia and North America Attracting Significant Investments in Manufacturing Sector, China and U.S. Leading the Way

Direct Investment Income Credit/Debit for Q4 2022: A Breakdown by Region and Industry

Direct investment income is an important indicator of economic activity and international investment flows. It reflects the income generated by foreign direct investment (FDI) and domestic direct investment (DDI) in a country or region. Understanding the breakdown of direct investment income by region and industry can provide insights into investment trends and the sectors that attract significant investment.

In following document, bank gives the data on direct investment income credit/debit for the fourth quarter of 2022, specifically focusing on the regions of Asia and North America, and the industries in which direct investment income is generated. The data is presented in Japanese yen (JPY), where 100 million yen is equivalent to 1億円.

Direct Investment Income by Region: The data shows that Asia received a total of 19,055 million yen in direct investment income for Q4 2022. Among the top three recipients in Asia, China ranked first with 5,469 million yen, followed by Hong Kong with 1,622 million yen, and Taiwan with 851 million yen. These countries attracted significant direct investment income during the quarter, reflecting their attractiveness as investment destinations.

North America received a total of 20,152 million yen in direct investment income for the same period. The United States was the main recipient in North America, accounting for 19,668 million yen of the total. This highlights the significance of the U.S. as a destination for direct investment income in the region.

Direct Investment Income by Industry: The manufacturing sector was a major recipient of direct investment income in both Asia and North America. In Asia, the manufacturing sector received a total of 10,766 million yen, with China (3,871 million yen) and Taiwan (823 million yen) being the top two recipients. In North America, the manufacturing sector received a total of 14,226 million yen, with the United States (13,798 million yen) accounting for the majority of the income.

Breaking down the manufacturing sector further, various sub-sectors also received direct investment income. In Asia, the food sector received 1,590 million yen, the textile sector received 1,348 million yen, and the lumber and pulp sector received 725 million yen. Similarly, in North America, the food sector received 1,069 million yen, the textile sector received 1,180 million yen, and the lumber and pulp sector received 1,044 million yen. These data highlight the significant investment in these sub-sectors within the manufacturing sector.

Apart from manufacturing, other sectors also received direct investment income. In Asia, the chemicals and pharmaceuticals sector received 1,596 million yen, the petroleum sector received 532 million yen, and the rubber and leather sector received 471 million yen. In North America, the chemicals and pharmaceuticals sector received 1,689 million yen, the petroleum sector received 678 million yen, and the rubber and leather sector received 493 million yen. These data indicate that these sectors also attracted significant investment during the period.

Other industries that received direct investment income in both regions include glass and ceramics, iron and non-ferrous metals, general machinery, electric machinery, transportation machinery, and precision machinery. However, the amounts varied by region and industry.

The data on direct investment income credit/debit for Q4 2022 provides insights into the regions and industries that attracted significant investment during that period. Asia and North America were the main regions that received direct investment income, with China, Hong Kong, Taiwan, and the United States being the top recipients. The manufacturing sector, including sub-sectors such as food, textile, and lumber and pulp, was a major recipient of direct investment

https://www.boj.or.jp/en/statistics/br/bop_06/bpdata/dii.htm


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