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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. Looking to 2025, moderate FDI growth is expected, supported by improved financing conditions and renewed M&A activity. However, risks and uncertainties – including geopolitical tensions and global economic instability – pose significant challenges. Investments in SDG-related sectors dropped 11% globally in 2024, with fewer projects in agrifood systems, infrastructure, and water and sanitation compared to 2015, when the goals were adopted. Africa stood out, recording an 84% surge in FDI to $94 billion, largely due to a single megaproject in Egypt. Excluding this project, the continent’s FDI rose 23%, though the overall figure remained modest at $50 billion.

Savings & investments

Foreign direct investment (FDI) is defined as an investment reflecting a lasting interest and control by a foreign direct investor, resident in one economy, in an enterprise resident in another economy (foreign affiliate). FDI inflows comprise capital provided by a foreign direct investor to a foreign affiliate, or capital received by a foreign direct investor from a foreign affiliate. FDI outflows represent the same flows from the perspective of the other economy. The top 5 economies for FDI 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%.

Economy, investment and finance

FDI fell 45% when excluding conduit economies, with 18 out of 27 European Union countries seeing drops. Even greenfield investments, vital for future growth, dropped 10% across Europe, though the region saw a 15% rise in total project value, signaling the significance of a few https://www.capitecbank.co.za/ large-scale projects. In 2023, foreign direct investment (FDI) outflows from developed economies increased by 4% to $1.06 trillion. The value of FDI outflows from developing economies decreased by 11% to $491 billion.

Project

In 2023, global foreign direct investment inflows dropped to $1.33 trillion. Excluding the COVID19 pandemic in 2020 and the financial crisis of 2009, this is the lowest value observed since 2005 in value terms, and since 1996 as a proportion of gross domestic product (GDP). The 2023 value as GDP percentage, 1.3%, is less than a third of the share in 2000. In 2023, developing Asia and Oceania remained the 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%.

• Multinational transactions in conduit economies fueled a 43% surge in developed economies.
• Investments in SDG-related sectors dropped 11% globally in 2024, with fewer projects in agrifood systems, infrastructure, and water and sanitation compared to 2015, when the goals were adopted.
• In 2023, developing Asia and Oceania remained the largest recipient of foreign direct investment (FDI), accounting for 47% of global inflows.
• Mexico’s FDI rose 11%, despite weaker regional project announcements, showing resilience in the face of broader challenges.
• The United Kingdom also saw a 32% increase in greenfield investments to $85 billion, and Italy posted a remarkable 71% jump to $43 billion.

World Investment Report

Flows from developing Asia and Oceania remained an important source of investment, accounting for 28% of global FDI. In developing economies, FDI fell 2%, marking the second consecutive annual decline. This dip threatens progress on the Sustainable Development Goals (SDGs), which depend heavily on international finance. Investments in SDG-related fell 11% globally in 2024, with fewer projects in agrifood, infrastructure, and water and sanitation than in 2015, when the goals were adopted. North America saw a 13% rise in FDI, driven by an 80% increase in US mergers and acquisitions (M&A).

In 2023, foreign direct investment hit a fourteen-year low (excluding the pandemic year)

Mexico’s FDI rose 11%, despite weaker regional project announcements, showing resilience in the face of broader challenges. Multinational transactions in conduit economies fueled a 43% surge in developed economies. In 2023, the United States of America remained the largest destination economy for FDI. 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. 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.

Foreign investments: Diverging trends amid global challenges

In 2023, global foreign sasol firm direct investment (FDI) flows decreased marginally by 2% to $1.33 trillion. 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. 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. For both developed and developing economies, the stakes are high as they navigate this complex landscape.

Global Investment Trends Monitor, No. 48

FDI is https://istorepreowned.co.za/ 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. Thus, in cases of reverse investment or disinvestment, FDI may be negative. It also provides analysis on global value chains and the operations of multinational enterprises, with special attention to their development implications.