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. 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 sasol limited to their development implications.
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.
- However, risks and uncertainties – including geopolitical tensions and global economic instability – pose significant challenges.
- In 2023, global foreign direct investment (FDI) flows decreased marginally by 2% to $1.33 trillion.
- © Shutterstock/PradeepGaurs | A factory manufacturing integrated circuits in Uttar Pradesh State, India.
- Meanwhile, ASEAN countries (Brunei Darussalam, Burma, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Viet Nam) saw modest growth, with FDI increasing 2% to a record $235 billion.
- 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 large-scale projects.
- The share of developed economies in global outward FDI remained stable, accounting for 68%.
World Investment Report
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.
Global Investment Trends Monitor, No. 48
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 https://fnb.co.za/ (FDI), accounting for 47% of global inflows. Developing Africa, meanwhile, accounted for 4% of global FDI, and developing Americas for 15%.
Project
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 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.
In 2023, foreign direct investment hit a fourteen-year low (excluding the pandemic year)
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%.
FDI to developing countries declined 2%, marking a second consecutive annual fall for the Global South and challenges progress on the Sustainable Development Goals (SDGs), which rely heavily on international project finance. © Shutterstock/PradeepGaurs | A factory manufacturing integrated circuits in https://www.coronation.com/ Uttar Pradesh State, India. Megaprojects megaprojects in semiconductors largely drove global greenfield investments in 2024. In Latin America and the Caribbean, FDI declined by 9%, with Brazil’s inflows falling 5%. However, greenfield project numbers and values rose in Brazil, Argentina and Colombia, signaling potential future recovery.
Economy, investment and finance
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 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 sasol south africa limited 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.
Investment Advice
The value of greenfield projects – new investments in foreign markets – surged 93% in the US, reaching $266 billion, spurred by semiconductor megaprojects. https://www.tradingview.com/ The United Kingdom also saw a 32% increase in greenfield investments to $85 billion, and Italy posted a remarkable 71% jump to $43 billion. Asia, the largest recipient of FDI among developing regions, saw inflows decline by 7%. In contrast, India recorded a 13% increase in FDI, boosted by growth in greenfield project announcements. Meanwhile, ASEAN countries (Brunei Darussalam, Burma, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Viet Nam) saw modest growth, with FDI increasing 2% to a record $235 billion. International project finance – a key driver for infrastructure and energy investments – also faced challenges, with deals dropping 26% in number and nearly a third in value across developed economies.
