The World Investment Report 2024

The World Investment Report 2024, published by UNCTAD, provides a comprehensive analysis of global and regional foreign direct investment (FDI) trends and their implications for sustainable development.

Key highlights:

1. Global FDI Trends:
   • Global FDI flows declined by 2% in 2023, reaching $1.3 trillion. This downturn is attributed to ongoing global crises, trade tensions, and tighter financing conditions.
   • FDI in developing countries fell more significantly, by 7%, totaling $867 billion.
2. Regional Highlights:
   • Latin America and the Caribbean: Investment was driven by demand for commodities and critical energy transition minerals, which accounted for 23% of project values in the past two years.
   • Africa: Although FDI flows to Africa slightly declined, the continent saw significant investments in the clean energy sector, boosting sustainability efforts.
   • Developing Asia: This region experienced a substantial increase in greenfield investments, hosting 60% of the world’s megaprojects.
3. Sectoral Insights:
   • Investments in sustainable development sectors saw a notable decline, with funding dropping by over 10%. This stagnation poses a challenge to achieving the Sustainable Development Goals (SDGs) by 2030.
4. Policy Developments:
   • The report highlights the need for enhanced investment policies to address the adverse impacts of declining FDI on sustainable development. This includes measures to attract and retain FDI, particularly in sectors critical to the SDGs.
5. Future Prospects:
   • The report emphasizes the importance of restoring global FDI flows to support economic recovery and sustainable development. It calls for international cooperation and innovative policy solutions to create a more resilient and inclusive global investment environment.

These findings underscore the critical role of FDI in driving economic growth and achieving sustainability targets, while also highlighting the challenges posed by current global economic conditions​ (UNCTAD)​​ (UNCTAD)​.