Global foreign investment rose 6% in 2025 despite lingering uncertainties - UN

Worldwide foreign direct investment saw a 6.0% increase in 2025, reaching $1.6 trillion after two years of decline, according to the UN Trade and Development agency (UNCTAD). However, the UN's World Investment Report 2026 warns that this recovery is "narrow, fragile and uneven," with a significant concentration of investment in a few countries and sectors.

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the recovery was “narrow, fragile and uneven”.

More than 80% of global FDI was attracted by just 20 countries. Investment growth was largely driven by a small number of megaprojects, especially those related to artificial intelligence infrastructure, such as data centers. Other sectors that saw growth included oil and gas, and semiconductors. In contrast, new project activity remained subdued in most other sectors, including renewable energy, manufacturing, and general infrastructure, indicating the limited breadth of the recovery.

UN Secretary-General Antonio Guterres noted "seismic shifts in the global investment landscape," emphasizing that the expansion was primarily fueled by large-scale projects. The report highlights disparities across countries, regions, and sectors, masking underlying fragility.

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The FDI growth seen in 2025 “masks underlying fragility and disparities across countries, regions and sectors”.

Wealthy countries accounted for the majority of the FDI increase, with inflows rising 11% in developed economies compared to a mere 2% hike in developing economies, which received $901 billion. While developing nations still represent over half of global FDI, distribution remains uneven. Developing Asian countries were the largest recipients ($644 billion), followed by Latin America and the Caribbean ($188 billion). Africa received approximately $70 billion, and the least developed countries saw a 21% increase to $43 billion, though this represented only 2.7% of global FDI and was concentrated in a few resource-rich nations.

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driven largely by a small number of megaprojects, particularly infrastructure related to artificial intelligence.

The report also observed an increase in government intervention, with a record 229 investment policy measures implemented. While most policies favored investors, many aimed to attract investment into strategic industries, support domestic economic priorities, or address economic security concerns.

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Most other sectors registered declines, including renewable energy, infrastructure and manufacturing, showing how narrow the recovery remains.