UNCTAD – World Investment Report, 2024

Global foreign direct investment (FDI) in 2023 saw a marginal decrease of 2% to $1.3 trillion, with a significant impact from European conduit economies. The challenging global environment for international investment in 2024 is characterized by weakening growth prospects, economic fracturing trends, trade tensions, and supply chain diversification. However, multinational enterprise profit levels remain high, and greenfield project announcements in 2023 are expected to positively affect FDI. Project finance and cross-border mergers and acquisitions were weak in 2023, especially in developed countries. Greenfield investment project announcements provided a bright spot in 2023, with growth in manufacturing and developing countries attracting more projects than developed countries. In developed countries, MNE financial transactions, influenced by a minimum tax implementation, had a significant impact on FDI flows. FDI flows to developing countries declined by 7%, with a major decrease in developing Asia. In Africa, FDI inflows declined by 3%, but greenfield announcements included megaprojects like a green hydrogen project in Mauritania. Developing Asia saw an 8% decrease in FDI, with declines in China, India, and West and Central Asia.