Foreign direct investment flows recover after pandemic dip
Global foreign direct investment (FDI) inflows recovered to US$1.4 trillion in 2024, according to UNCTADstat data — approaching the pre-pandemic record of US$1.5 trillion set in 2019. The recovery, however, remains uneven across regions and investment types, with greenfield investments leading the rebound while cross-border mergers and acquisitions remain subdued.
Developing economies in Asia attracted the largest share of FDI inflows, accounting for 38% of global totals. India emerged as a standout performer, with FDI reaching a record US$89 billion driven by investments in technology, renewable energy, and manufacturing. Viet Nam, Indonesia, and Thailand also attracted significant inflows as supply chains continue to diversify away from single-country dependence.
FDI into African economies reached US$54 billion in 2024, a 12% increase from 2023. However, this figure masks significant concentration: South Africa, Egypt, Morocco, and Ethiopia absorbed over half the continent's total. Transition economies — particularly in Central Asia and Eastern Europe — saw a continued contraction in FDI as geopolitical uncertainty discouraged cross-border investment.
A notable trend in the 2024 data is the growing share of FDI driven by sustainability commitments. Investments aligned with ESG criteria — clean energy, sustainable agriculture, and green infrastructure — grew 23% and now represent approximately 18% of total greenfield FDI globally. This reflects both policy push (e.g., the US Inflation Reduction Act, EU Green Deal) and growing investor preference for climate-aligned assets.
UNCTAD's FDI data also shows persistent structural gaps. Least developed countries (LDCs) collectively received only 2.1% of global FDI in 2024, despite representing 14% of the world's population. Improving the investment climate in LDCs — through better infrastructure, transparent regulation, and investment promotion — remains critical for channelling private capital towards sustainable development outcomes aligned with the 2030 Agenda.
Datasets used in this analysis
