FDI to developing economies hits 18-year low: World Bank

Foreign direct investment (FDI) into developing economies fell to USD435bn in 2023, the lowest since 2005, due to rising trade barriers and policy uncertainty, the World Bank said in a report. FDI dropped to 2.3% of GDP, half its 2008 peak. The decline, driven by restrictive public policy and weakening investment treaties, threatens job creation and economic growth. Only 380 new investment treaties were enacted from 2010 to 2024, compared to 870 between 2000 and 2009. FDI flows remain heavily concentrated, with China, India, and Brazil receiving nearly half of all inflows, while the 26 poorest nations secured just 2%. The World Bank called for stronger global cooperation to reverse the trend and channel funding into countries with the greatest development needs.