Global FDI falls to $1.3T in 2023

Global foreign direct investment (FDI) decreased by 2% to $1.3 trillion in 2023, according to the latest report by UN Trade and Development (UNCTAD).

When excluding the impact of a few exceptions, the global FDI will drop by over 10% for the second consecutive year, due to increasing trade and geopolitical tensions in a slowing global economy.

FDI flows to developing countries fell by 7% to $867 billion last year, according to the report.

While the prospects for FDI remain challenging in 2024, the “modest growth for the full year appears possible”, the report said, citing the easing of financial conditions and concerted efforts towards investment facilitation – a prominent feature of national policies and international agreements.

“Investment is not just about capital flows; it is about human potential, environmental stewardship and the enduring pursuit of a more equitable and sustainable world,” says UNCTAD Secretary-General Rebeca Grynspan.