UNCTAD Report: Global FDI Up 11%, Down 8% Excluding Europe

Current Context: The UNCTAD Global Investment Trends Monitor 2024, released by the United Nations Conference on Trade and Development (UNCTAD) on January 20, 2025, presents an insightful analysis of global foreign direct investment (FDI) trends for the year.

• Here are some key points:
• Global FDI rose by 11% to an estimated $1.4 trillion in 2024.
• However, when excluding flows through European conduit economies (which often act as intermediaries), FDI actually dropped by 8%.
• Developed economies saw a 43% surge in FDI, largely due to multinational transactions in conduit economies. Without these flows, FDI in developed economies would have dropped by 15%.
• Developing countries experienced a 2% decline in FDI, posing challenges for progress on the Sustainable Development Goals (SDGs).
• Investments in SDG-related sectors fell by 11% globally, with fewer projects in agrifood systems, infrastructure, and water and sanitation compared to 2015.
• Greenfield projects (new investments in foreign markets) fell by 8% in number and 7% in value, though investments in semiconductors and AI kept values near 2023's record levels.
• International project finance continued to fall sharply, with deals dropping 26% in number and values down nearly a third.

Question:

1. What was the estimated global Foreign Direct Investment (FDI) value in 2024 as per the UNCTAD Global Investment Trends Monitor?

• A) $1.2 trillion
• B) $1.3 trillion
• C) $1.4 trillion
• D) $1.5 trillion

Answer: C) The report highlighted that global FDI rose by 11% in 2024, reaching an estimated $1.4 trillion.