Global FDI shrinks again in '24, project finance falls 27%

Investment activity weakened sharply, particularly in major economies like China and India

- Rhik Kundu

Global foreign direct investment (FDI) declined 11% in calendar year 2024 to $1.5 trillion, marking a second consecutive year of double-digit contraction, while international project finance deals slumped 27%, a UN agency said in a Thursday report. Investment activity weakened sharply, particularly in major economies like China and India.

The World Investment Report 2025 by the UN Conference on Trade and Development (UNCTAD) noted that after stripping out financial flows routed through European conduit economies—typically for tax avoidance—global FDI actually rose 4% last year. But overall, the report offers a sombre assessment of global investment trends, especially in developing Asia, which remains the world's largest recipient region.

FDI inflows into developing Asia fell 3% in 2024, reflecting growing uncertainty in cross-border capital flows.