The 2024 World Investment Report by the UN Conference on Trade and Development (UNCTAD) highlighted the decrease in global foreign investment for the second consecutive year, citing rising geopolitical tensions and concerns over “greenwashing” as major factors. According to the report, developing countries were the most affected by this decline, with a decrease of over 10% in foreign direct investment (FDI) excluding the large swings in investment flows in a few European conduit economies. UNCTAD Secretary-General Rebeca Grynspan emphasized that investment is not just about capital flows, but also about human potential, environmental stewardship, and creating a more equitable and sustainable world. The report also noted that insufficient funding is hindering efforts to achieve the 2030 Agenda for Sustainable Development, highlighting the urgent need for policies to boost finance. In 2023, tight financing conditions led to a 26% drop in FDI deals, triggering a 10% decrease in investment in sectors linked to Sustainable Development Goals (SDGs), such as agrifood systems, water, and sanitation. Developing countries saw only marginal growth in sustainable bonds and a 60% drop in financing for funds to support them. Despite this, developing economies in Asia, which account for 60% of the world’s megaprojects, recorded a significant increase in greenfield FDIs. However, overall foreign investment flow to Asia decreased from $678 billion in 2022 to $621 billion in 2023. China and its Hong Kong Special Administrative Region (SAR) remain the largest investors in the region, followed by the United States, Japan, and Singapore.
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