The World Investment Report 2025, issued by UNCTAD, examines global trends in foreign direct investment (FDI) with a focus on investment in the digital economy and alignment with Sustainable Development Goals (SDGs). The report highlights regional and sectoral patterns, identifies shortfalls in key investment areas, and proposes policy directions to reorient FDI toward inclusive, productive, and sustainable outcomes.
Key Insights:
Global FDI Trends:
Global FDI dropped 11% in 2024 (excluding volatile conduit flows), marking a second consecutive year of decline in productive investment.
Including financial flows through certain conduit economies, global FDI rose modestly (+4%) to ~$1.5 trillion, masking declining real investment in key sectors.
Regional Patterns:
Developed Economies: Europe saw a 58% plunge, while North America had modest gains, mainly driven by the U.S.
Africa: FDI inflows surged 75%, largely due to a single large project in Egypt; excluding that, growth was still positive (~12%).
Southeast Asia: ~10% growth, though Asia overall had a small decline.
Latin America & Caribbean: 12% decline in FDI flows.
LDCs, LLDCs, and SIDS: Continue to receive a very small share of global investment; flows remain highly concentrated in a few economies.
Sectoral Patterns and SDGs:
Investment in key SDG sectors fell significantly:
Renewables: down ~31%
Transport: down ~32%
Water & Sanitation: down ~30%
Digital Economy: FDI in digital sectors (ICT manufacturing, digital services, semiconductors) increased 14%, but ~80% of new investment went to just 10 countries. Many developing countries are left behind due to weak infrastructure, regulatory gaps, and skills shortages.
International Project Finance: Fell 26% in 2024, affecting large-scale infrastructure development.
