Summary

The United Nations Conference on Trade and Development (UNCTAD) analysed trends in global foreign direct investment (FDI). Despite geopolitical tensions and instability in global trade, worldwide FDI flows increased by 6% in 2025 to USD 1.6 trillion, ending a two-year decline. However, the recovery remains uneven. Investment flows to developed economies rose by 11%, while developing economies recorded growth of only 2%, reaching USD 901 billion. UNCTAD notes the increasing concentration of investment flows. The 20 largest recipient countries accounted for more than 80% of global FDI, while a significant share of the increase was driven by projects in digital infrastructure and energy. For developing countries, FDI remains the largest source of external finance, accounting for around 50% of total external financial flows in 2025. However, its contribution to development depends not on the volume of capital attracted, but on the integration of domestic companies into global value chains. Strengthening infrastructure, human capital and governance institutions is therefore essential to improving competitiveness.