Global foreign direct investment trends

Global foreign direct investment (FDI) flows reached approximately $1.4 trillion in 2024, marking an 11% increase. However, excluding financial flows to European economies, FDI actually declined by around 8%. Investment in developing countries fell for the second consecutive year (-2%), with notable drops in Central and West Asia and South America. While ASEAN experienced modest FDI growth, marginal increases were also observed in Africa, South Asia (particularly India), and Central America and the Caribbean. Greenfield investments and international project finance agreements saw declines in both the number and value of projects. Project financing remained particularly weak due to challenging financial conditions and investor caution in anticipation of lower interest rates. Meanwhile, cross-border mergers and acquisitions rose by 2%, suggesting a possible reversal of the downward trend seen over the past two years. Looking ahead, global FDI is projected to experience moderate growth in 2025, driven by improved financing conditions and a resurgence in merger and acquisition activity. Keywords: global flows, foreign direct investment, greenfield investment, mergers and acquisitions.