Global foreign direct investments down 8% in 2024

By Mucahithan Avcioglu

ISTANBUL (AA) - Global foreign direct investments (FDI) fell 8% in 2024 compared to 2023, according to the Global Investment Trends Monitor released by UN Trade and Development (UNCTAD) on Monday.

Among the developed economies, North America saw a 13% rise in FDI, driven by an 80% increase in US mergers and acquisitions.

Europe, on the other hand, faced declines as FDI fell 45% when excluding conduit economies, as Germany’s FDI decreased 60% and Italy’s fell 35%.

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.

China faced a 29% drop. On the contrary, India recorded a 13% increase in FDI, boosted by growth in greenfield project announcements, according to the report.

Africa, on the other hand, saw a remarkable 84% rise in FDI to $94 billion, largely due to a single megaproject in Egypt. Excluding this project, the continent’s FDI rose 23%, however, the overall figure remained at $50 billion.

The value of greenfield projects – new investments in foreign markets – increased 93% in the US, reaching $266 billion, driven by semiconductor megaprojects. The UK also saw a 32% increase in greenfield investments to $85 billion, and Italy posted a remarkable 71% jump to $43 billion.