Global FDI rises 6% but gains stay uneven: UNCTAD

Global foreign direct investment (FDI) rose 6 per cent to $1.6 trillion in 2025 after two years of decline, but the recovery remains narrow and uneven, according to the World Investment Report 2026 by UN Trade and Development (UNCTAD). For manufacturers, exporters and sourcing teams, the data points to a selective capital environment rather than a broad-based revival in production investment.UNCTAD said inflows to developed economies increased 11 per cent, while developing economies posted only 2 per cent growth to $901 billion. The top 20 host economies attracted more than 80 per cent of global FDI in 2025, showing that cross-border capital is becoming more concentrated by country, sector and project type.

Global FDI rose 6 per cent to $1.6 trillion in 2025, ending two years of decline, UNCTAD said.
Developing economies saw only 2 per cent growth to $901 billion, signalling uneven capital access for production-led markets.
Project values are concentrating in strategic sectors, while manufacturing and infrastructure declined.
2026 prospects remain pressured by policy uncertainty and financing.

Developing economies received more than half of global FDI, but regional outcomes varied, the UNCTAD report said. Developing Asia attracted $644 billion, Latin America and the Caribbean rose 14 per cent to $188 billion, and Africa received about $70 billion. Least developed countries saw inflows rise 21 per cent to $43 billion, but still accounted for only 2.7 per cent of global FDI.

The report said strategic sectors including artificial intelligence infrastructure, semiconductors, critical minerals and energy-transition technologies and services represented 44 per cent of global greenfield project values in 2025, up from 16 per cent in 2020. Project-value growth was led mainly by data centres, followed by oil and gas and semiconductors, while most other sectors declined, including renewable energy, infrastructure and manufacturing.

UNCTAD said governments adopted a record 229 investment policy measures in 2025, with most favourable to investors but many aimed at strategic industries, domestic economic priorities or economic security. For 2026, trade policy uncertainty, geopolitical tensions, conflicts, high financing costs and economic fragmentation are expected to weigh on decisions. The findings will frame UNCTAD’s World Investment Forum 2026 in Doha, Qatar, from October 25 to 27.

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