UN Trade – Global FDI Estimated 8% Down in 2024: Project Finance Plummets

The report by UN Trade "Global FDI Estimated 8% Down in 2024: Project Finance Plummets" analyzes the trends and challenges in foreign direct investment (FDI) globally. In 2024, global FDI flows reached an estimated $1.4 trillion, marking an 11% increase when including financial flows through European conduit economies. However, excluding these economies, FDI declined by 8%. FDI in developing countries fell for the second consecutive year, particularly in Central and West Asia and South America, while increasing in ASEAN, Africa, and South Asia. Project finance was notably weak, with a 26% decline in deal numbers and a nearly one-third decrease in value. Despite a 13% fall in cross-border M&A deals, total values rose by 2%, supported by high-value transactions. The report highlights the challenging investment environment, especially for sectors critical to achieving Sustainable Development Goals, with a notable decline in SDG-related investments.