GENEVA (Reuters) – Global foreign direct investment flows could rise modestly in 2024 after a marginal increase last year due to higher investment in some European economies, the United Nations trade body said on Wednesday.
Foreign direct investment flows can include investments made by companies or governments into other countries or companies or projects in those countries.
“Looking ahead, a modest increase in FDI flows in 2024 appears possible, as projections for inflation and borrowing costs in major markets indicate a stabilisation of financing conditions for international investment deals,” the United Nations Conference on Trade and Development said.
The U.N. trade organisation stressed, however, that many factors, including geopolitical risks and high debt levels in some countries, could hinder foreign direct investment.
In 2023, foreign direct investment stood at an estimated $1.37 trillion, a marginal increase of 3% compared with the previous year. UNCTAD attributed this slight increase to higher investment in some European countries.
Foreign direct investment flows to developing countries declined last year, falling by 9% to $841 billion, with a 12% drop in the developing countries of Asia and a 1% fall in Africa, UNCTAD said.
(Reporting by Gabrielle Tétrault-Farber; Editing by Jane Merriman)