Global FDI Declines Amid Geopolitical Tensions

Global foreign direct investment (FDI) dropped by 2% last year to $1.3 trillion due to increasing geopolitical tensions and a slowing global economy. Despite the decline, the UNCTAD predicts a modest return to FDI growth in 2024, driven by easing financial conditions and investment facilitation efforts.

Global foreign direct investment (FDI) fell by 2% last year to $1.3 trillion, the U.N. trade body said on Thursday, citing increasing geopolitical tensions amid a slowing global economy.

However, the United Nations Conference on Trade and Development (UNCTAD) said a return to modest FDI growth in 2024 was possible, citing "the easing of financial conditions and concerted efforts towards investment facilitation".