Story perspectives

FDI in Developing Economies Plummets to 2005 Levels

6/16/2025

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Summary

Story summary

Foreign direct investment (FDI) in developing economies fell to US$435 billion in 2023, the lowest since 2005.
Geopolitical risks and investment barriers are stifling FDI growth, jeopardizing development and job opportunities.
The report calls for reforms to enhance business environments and trade integration.
FDI inflows represent just 2.3% of GDP, a significant decline since 2008.
Advanced economies accounted for nearly 90% of FDI in developing regions over the last decade.

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Story summary

Foreign direct investment (FDI) in developing economies fell to US$435 billion in 2023, the lowest since 2005.
Geopolitical risks and investment barriers are stifling FDI growth, jeopardizing development and job opportunities.
The report calls for reforms to enhance business environments and trade integration.
FDI inflows represent just 2.3% of GDP, a significant decline since 2008.
Advanced economies accounted for nearly 90% of FDI in developing regions over the last decade.