Global Investment Trends Monitor, No 48 Un Trade And Development Unctad

It also provides analysis on global value chains and the operations of multinational enterprises, with special attention to their development implications.

World Investment Report

  • Thus, in cases of reverse investment or disinvestment, FDI may be negative.
  • While flows to developed economies increased by 9% to $464 billion, flows to developing economies fell by 7% to $867 billion, largely because FDI inflows in developing Asia fell by 8% to $621 billion.
  • The top 5 economies for FDI outflows in 2023 were the United States of America, Japan, China, Switzerland and Hong Kong (China).

The value of FDI outflows from developing economies decreased by 11% to $491 billion. In 2023, developing Asia and Oceania remained the sasol south africa ltd largest recipient of foreign direct investment (FDI), accounting for 47% of global inflows. Developing Africa, meanwhile, accounted for 4% of global FDI, and developing Americas for 15%. In 2023, global foreign direct investment inflows dropped to $1.33 trillion.

Project

Africa and Asia were hit hard, with nearly 200 fewer announced projects in Africa and almost 150 fewer in Asia. Investments in SDG-related sectors dropped 11% globally https://www.bidvestbank.co.za/ in 2024, with fewer projects in agrifood systems, infrastructure, and water and sanitation compared to 2015, when the goals were adopted. FDI stock is the value of capital and reserves attributable to a non-resident parent enterprise, plus the net indebtedness of foreign affiliates to parent enterprises.

Country Fact Sheets

investment

FDI outflows represent the same flows from the perspective of the other economy. The top 5 economies for FDI https://www.tradingview.com/ outflows in 2023 were the United States of America, Japan, China, Switzerland and Hong Kong (China). The share of developed economies in global outward FDI remained stable, accounting for 68%. Flows from developing Asia and Oceania remained an important source of investment, accounting for 28% of global FDI. The decline in the Global South came as global FDI rose 11% to $1.4 trillion. However, UN Trade and Development noted that global FDI actually fell 8% when excluding some European conduit economies, which often serve as transfer points for investment before they reach their final destination.

Investment Policy Hub

In 2023, global foreign direct investment (FDI) flows decreased marginally by 2% to $1.33 trillion. While flows to developed economies increased by 9% to $464 sasol company billion, flows to developing economies fell by 7% to $867 billion, largely because FDI inflows in developing Asia fell by 8% to $621 billion. FDI to developing Americas was almost stable, decreasing by 1% to $193 billion. FDI inflows to least developed countries rose by 17%, reaching $31 billion. In 2023, foreign direct investment (FDI) outflows from developed economies increased by 4% to $1.06 trillion.

Foreign direct investment (FDI) to developing countries fell 2% in 2024, marking a second consecutive annual decline, according to UN Trade and Development’s (UNCTAD) latest Global Investment Trends Monitor. Economic, investment and financial data provide vital measurements of economies’ health, overall development and capacity for growth. This collection of thematic insights explores critical dimensions of national accounts, economic potential and price signals. Latin America and the Caribbean saw FDI fall 9%, with flows to Brazil down 5%. However, greenfield investment picked up in Brazil, Argentina and Colombia, hinting at a potential rebound.

This downturn jeopardizes progress on the Sustainable Development Goals (SDGs), many of which rely heavily on international finance. Globally, investments in SDG-related sectors fell 11% in 2024, with fewer projects in agrifood systems, infrastructure, and water and sanitation than in 2015, when the goals were adopted. In 2023, the United States of America remained the largest destination economy for FDI. Multinational transactions in conduit economies fueled a 43% surge in developed economies.

Economy, investment and finance

Mexico stood out in Central America, posting an 11% increase despite weaker regional project announcements. An objective evaluation of a country’s legal, regulatory and institutional framework to attract direct investments. India, by contrast, posted a 13% increase, driven by a rise in greenfield projects. The ASEAN bloc (Brunei Darussalam, Burma, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Viet Nam) recorded a modest 2% gain, reaching a record $235 billion. FDI is expected to grow moderately in 2025, driven by improved financing conditions and increased mergers and acquisitions (M&A), though risks and investor uncertainty remain high.

In Africa, FDI surged 84% to $94 billion, largely due to a megaproject in Egypt’s Ras El-Hekma peninsula. Without this project, the continent’s inflows rose by 23% but remained modest at $50 billion. The World Investment Report focuses on trends in foreign direct investment (FDI) worldwide, at the regional and country levels and emerging measures to improve its contribution to development. FDI https://www.sanlam.co.za/ to developing Asia, the world’s largest recipient region, dropped 7%. The drop in international project finance was particularly sharp, plummeting 31%.