Beyond Cost 2024

Changes in Foreign Direct Investment Confidence Index between 2013 and 2023 Average percentage change in Foreign Direct Investment between 2013 and 2023FIGURE 2 FIGURE 3GDP per capita ($, thousands)High HighLow Low Manufacturing contribution to GDP (% of GDP)Converger Scaler Adapter ConnectorStable investment favourability+2% Reducing inward investment-15%Stable investment favourability+1% Gaining inward investment+14%GDP per capita ($, thousands)High HighLow Low Manufacturing contribution to GDP (% of GDP)Converger Scaler Adapter Connector+295% +74%+215% +144%Source: World Bank; Global Business Policy Council (GBPC); World Economic Forum in collaboration with Kearney. Source: World Bank; Global Business Policy Council (GBPC); World Economic Forum in collaboration with Kearney.The shift in FDI confidence is also aligned with actual changes in FDI5 over the same period (see Figure 3). This graph shows that countries with higher GDP per capita have experienced a more significant increase in FDI, regardless of the contribution of manufacturing to GDP . On the bottom half of the graph, connectors stand out as more attractive destinations for manufacturing, with FDI growth levels that are double that of adapters. Beyond Cost: Country Readiness for the Future of Manufacturing and Supply Chains 8