Global investment decline may worsen due to tariffs, UN trade agency warns
From Yahoo Finance: 2025-06-19 06:32:00
Global foreign direct investment declined by 11% in 2024, with fears of a worse year ahead due to trade tensions, according to UNCTAD. Geopolitical tensions and trade fragmentation contributed to lower investment, with UNCTAD’s outlook for 2025 being negative.
Including European conduit economies, FDI increased by 4% to $1.5 trillion, but much of this investment is not productive. Developed economies saw a sharp drop in investment, while North America and Southeast Asia experienced increases in FDI.
UNCTAD noted that capital inflows in developing countries remained stable, but crucial job-creating sectors were not receiving necessary investments.
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