The World Investment Report 2024 indicates that global Foreign Direct Investment (FDI) expanded by 4% from USD1.45 trillion in 2023 to USD1.51 trillion recorded in 2024. The growth was however, inflated by volatile financial flows through several European economies with high levels of conduit flows. When these are excluded, global FDI flows contracted for the second consecutive year by 11% from USD1.67 trillion to USD1.49 trillion in 2023 and 2024 respectively.
International project finance, critical for large-scale infrastructure and development, registered the steepest decline, falling by 26%. Meanwhile, cross-border mergers and acquisitions remained below the long-term average, signaling a structural shift toward domestic and nearshore investment strategies amid rising policy risks, regulatory scrutiny and global uncertainty. What is most alarming, however, is the continued deterioration of investment flows into key sectors aligned with the Sustainable Development Goals.
The report identifies investment in the digital economy as an engine of growth and transformation. The digital economy is expanding at an annual rate of 10 to 12 per cent, outpacing global GDP growth and accounting for a rising share of value creation worldwide. To translate digital opportunities into inclusive progress, it is essential to create an enabling environment for sustainable investment in the digital economy. While many developing countries have adopted digital strategies, these often exist in silos – disconnected from broader industrial, sustainability and investment agendas. Gaps in data governance, poorly calibrated intellectual property frameworks that neither encourage innovation nor facilitate knowledge sharing, and fragmented regulatory regimes continue to hold back progress.
This Report 2025 sets out a road map for bridging this gap.
For further details, the captioned Report can be accessed on via the link below: