Figures published by data and analytics firm GlobalData show that deal activity has gone down 41% year-on-year to 282 due to the current geopolitical tensions, inflation and recession fears spooking investors.

“The decline in deal activity in the industry indicates dampened sentiments and cautious approach of investors,” said lead analyst Aurojyoti Bose. 

According to the data, private equity deals were the most impacted, sinking 44% compared to the same time last year. Mergers and acquisitions and venture financing followed suit, going down by 43% and 34% respectively.

Japan, the US and the UK saw the biggest slump, with deal volumes going down by 54% and 48%. China, on the other hand, was the exception as it reported a 19% year-on-year growth.

“On the other hand, easing of travel restrictions seems to be encouraging Chinese travellers,” he added. “As a result, China stood out as a notable exception and registered a 19% year-on-year growth in the number of deals announced during the period.”