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According to UNCTAD Global Investment Trends Monitor 2024, FDI Increases by 11%, But Decreases by 8% When Excluding European Flows.

International | Dated: 27 Jan 2025

In January 2025, the United Nations Conference on Trade and Development (UNCTAD) released its Global Investment Trends Monitor 2024. The report stated that global foreign direct investment (FDI) increased by 11%, reaching an estimated USD 1.4 trillion. However, FDI decreased by 8% when excluding the flows through European conduit economies (countries that channel investments).

🎯 Key Highlights:

  • - This decline in FDI could pose a risk to the progress of the Sustainable Development Goals (SDGs), which rely on international project financing.
  • - In India, FDI grew by 13%, with both the number and value of greenfield (new) projects increasing.
  • - The United States of America (USA) and India saw significant growth in manufacturing projects, setting new records.In India, semiconductor and basic metals projects were major contributors to this growth.

💡 Other Important Facts:

  • (i) Large-scale projects announced with multiple investors, often involving substantial debt components. These projects mainly focus on infrastructure sectors and are crucial for investments aligned with the Sustainable Development Goals (SDGs).
  • (ii) Announcement-based data that represent investment intentions during the reporting year, offering insights into future Foreign Direct Investment (FDI) trends. These projects predominantly target industrial sectors.
  • (ii) Transactions involving acquisitions or mergers of companies across national borders, which have a direct impact on FDI flows.

📚 Test Your Knowledge:

According to the recently released UNCTAD Global Investment Trends Monitor 2024, by what percentage did global FDI increase?

Correct Answer: 11%

🚀 Quick Recap:

About the United Nations Conference on Trade and Development (UNCTAD)

  • Secretary-General: Rebeca Grynspan
  • Headquarters: Geneva