The World Investment Report 2024, published by UNCTAD, shows that global foreign direct investment (FDI) fell by 2% in 2023 to $1.3 trillion—and by over 10% when excluding volatile flows through European conduit economies. Developing countries were hit harder, with FDI dropping 7% to $867 billion. Investment in international project finance, vital for infrastructure and Sustainable Development Goals (SDGs), fell sharply by 26%.
Geopolitical tensions, high borrowing costs, and growing protectionism weakened mergers, acquisitions, and large-scale financing. However, greenfield investments—especially in manufacturing hubs like India and ASEAN—saw a modest increase.
The report highlights cautious optimism for 2024, with hopes that improved financial conditions will help reverse the trend. But for developing regions to attract more investment, the report emphasizes the need for stronger business environments, better digital government services, and greater international cooperation to direct private capital toward sustainable development.
