Published on: 2026-07-07
Source: United Nations – United Nations –
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July 7, 2026 Economic Development
After a two-year decline, global flows of foreign direct investment increased by six percent in 2025, reaching $1.6 trillion. However, as emphasized by the authors of the report published on Tuesday by the United Nations Conference on Trade and Development (UNCTAD), this trend cannot be considered either sustainable or uniform: investments are growing, but not everywhere and not for everyone.
Developed economies increased capital inflows by 11 percent, while developing countries managed to add only two. At first glance, this looks like a return to growth, but the numbers hide a much more complex picture: it is important not only what volumes of money cross borders, but also exactly where they are directed and what opportunities they open up.
Selective recovery
The twenty largest economies in the world have gathered over 80 percent of all global investments, and this indicator runs like a red thread throughout the entire report. Capital is concentrated in a limited number of countries, industries, and projects, meaning that the majority of the world remains on the periphery of the investment process. At the same time, large volumes of investments increasingly do not mean the emergence of new factories, infrastructure, jobs, or technology transfer.
Developing countries as a whole received more than half of the global financial inflows, but the growth was distributed very unevenly. Asia maintained its status as the largest recipient – it received $644 billion. Latin America and the Caribbean received 14 percent more than the previous year – the level of external investments in this region reached $188 billion.
About 70 billion dollars flowed into Africa – less than in the record-breaking year 2024, but still one-third more than the average level of the previous decade and a half. The least developed countries increased their investment inflows by 21 percent, to 43 billion, although their share in the global volume remains negligible – only 2.7 percent, with the bulk of investments concentrated in several resource economies.
The concentration of resources in strategic sectors is particularly noticeable – in the field of artificial intelligence, in the semiconductor industry, in the extraction of critical minerals, and in the development of energy transition technologies. In 2025, these areas accounted for 44 percent of the value of all new projects, whereas in 2020 this share was only 16 percent. The growth was primarily driven by data centers, followed by oil and gas projects and chip manufacturing. Most other industries, including green energy, showed a decline.
Governments, the report says, are increasingly intervening in the allocation of investment flows. In 2025, countries adopted a record number – 229 – of investment policy measures. Although most of them were favorable to investors, more and more decisions are aimed at supporting strategic sectors, strengthening national economic priorities, and protecting economic security.
Prospects and Concerns
The outlook for 2026 remains challenging: investor decisions continue to be pressured by uncertainty in trade policy, geopolitical tensions, conflicts, high financial costs, and increasing fragmentation of the global economy. At the same time, competition for projects in strategic sectors is intensifying: governments strive to secure future sources of growth and technological advantage.
These findings will form the basis for discussion at the UNCTAD World Investment Forum, which will take place in Doha from October 25 to 27. Government representatives, investors, and development partners will seek ways to transform the selective investment landscape into broader development opportunities.
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