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Global FDI Rises to $1.6trn in 2025 – Report

Global foreign direct investment (FDI) rose by 6% to $1.6 trillion in 2025, up from $1.5 trillion in 2024, according to the United Nations Conference on Trade and Development (UNCTAD) in its latest World Investment Report: International Investment in a Turbulent Era.

UNCTAD noted that while the increase was significant, it was driven largely by developed and high-income economies, with developing economies attracting just over $901 billion, a modest 2% increase from 2024.

“Over the longer term, FDI remained weak relative to other indicators of international economic activity. During 2010–2025, global GDP and trade expanded steadily, while FDI growth was subdued and volatile,” the report stated.

FDI flows to developed economies rose by 11% to $723 billion, while inflows to high-income economies surpassed $1.1 trillion. In contrast, lower-middle-income economies saw a 5% decline, underscoring the uneven distribution of investment.

UNCTAD explained that the global increase was influenced by one-off transactions, corporate restructurings, conduit flows, and financial movements, rather than a broad-based recovery in productive investment.

Excluding conduit flows through major European financial centres, global FDI rose by 4% compared with 2024.

The report highlighted that Hong Kong (China), Singapore, and the United Arab Emirates together accounted for more than one-third of FDI inflows to developing economies, reflecting the concentration of investment in economies with stronger capacity to attract large-scale and strategic projects.

UNCTAD also pointed to the growing role of capital- and technology-intensive sectors, including high-tech and digital infrastructure, as drivers of investment.

“These patterns suggest that the 2025 increase was concentrated in economies with stronger capacity to attract large-scale and strategic investment,” the agency noted.

Nigeria, however, experienced a sharp decline in FDI in early 2026. According to the National Bureau of Statistics (NBS), inflows fell to $135.08 million in Q1 2026, down from $357.80 million in Q4 2025, even as total capital inflows reached $10.37 billion, driven largely by portfolio investments and short-term financial instruments.

The report concluded that the global FDI trend underscores the increasing concentration of international investment in economies and sectors capable of attracting technology-intensive and strategic capital, while countries with weaker investment frameworks continue to struggle.