Global FDI in 2024 rose 11%, year-on-year, reaching 1 trillion 378 billion dollars, UNCTAD reported.
What is FDI? Foreign Direct Investment occurs when a resident of one country obtains a lasting interest and a degree of influence over the management of a business enterprise in another country (commonly defined as 10% or more of the voting securities or an equivalent shareholding).
Global FDI in 2024
Below is the course of global FDI flows, in billions of dollars:
- 2022: 1,317.
- 2023: 1,242.
- 2024: 1,378.
FDI can take the form of establishing new operations (“greenfield investments”), purchasing existing operations (mergers and acquisitions), or adding capital to existing operations. It differs from portfolio investment (i.e., ownership of stocks, bonds or other financial assets).
If financial flows through European conduit economies are discarded, global FDI in 2024 declined 8 percent.
Some context: often these discarded financial flows serve as transfer points for investments before they reach their final destination.
Foreign direct investment (FDI) is at a crossroads, according to the latest Global Investment Trends Monitor published by UNCTAD.
Trend
Developed economies experienced marked contrasts in 2024. In North America, FDI increased by 13%. This growth was mainly driven by a significant 80% rebound in mergers and acquisitions in the United States.
In turn, greenfield projects, i.e. new investments in foreign markets, increased by 93%. In particular, the United States reached US$266 billion, boosted by mega-projects in the semiconductor sector.
On the other hand, the United Kingdom also showed a good performance, with a 32% growth, totaling US$85 billion. Italy was not far behind, with an impressive 71% increase, reaching US$43 billion.
In Latin America and the Caribbean, the situation was different. FDI declined by 9%, with Brazil registering a 5% drop. However, there were positive signs in some countries. In Brazil, Argentina and Colombia, both the number and value of new projects increased. This could indicate a possible recovery in the near future.
In addition, Mexico experienced 11% growth in FDI, despite weaker regional project announcements. This reflects a remarkable resilience in the face of broader challenges in the region.