According to a preliminary report from the United Nations Conference on Trade and Development (UNCTAD), global flows of foreign direct investment (FDI) increased by 14% in 2025, reaching $1.6 trillion.
As reported by the UN News Service, this growth was made possible after two years of declining investment volumes; however, as the authors of the study note, behind the positive indicators lies an unstable situation.
A significant part of the growth is associated with operations through global financial centers. More than $140 billion of the total increase comes from "transit flows." Without these operations, the actual growth of FDI would have been only about 5%, indicating insufficient recovery of investment activity.
Nevertheless, key indicators of investor sentiment remain low.
Funding for international projects decreased by 16% in value and by 12% in the number of deals, marking the fourth consecutive year of decline, bringing levels back to those of 2019. The number of new "greenfield projects" fell by 16%, with only a few large projects providing high figures.
Interestingly, FDI flows to developed economies increased by 43%, reaching $728 billion.
The main drivers of this growth were Europe and financial hubs. In the European Union, the increase was 56% due to large cross-border deals and a recovery in activity in countries such as Germany, France, and Italy.
At the same time, investment volumes in developing countries fell by 2%, reaching $877 billion. The least developed countries were the hardest hit: in three-quarters of them, there was either stagnation or a decline in FDI inflows.
International infrastructure projects also showed a decrease of 10%. The main reason for this was a significant reduction in investments in renewable energy against the backdrop of a reassessment of return risks and regulatory uncertainty. Domestic investors are beginning to play an increasingly important role; however, this may exacerbate the gap in countries dependent on external financing for large projects.
UNCTAD experts note that it is difficult to predict how events will unfold in 2026. With improved financial conditions and a revival of cross-border deals, FDI may see a slight increase. However, real investment activity, according to the report's authors, will be limited by geopolitical tensions, political uncertainty, and the fragmentation of the global economy. Without coordinated actions, global investments may concentrate only in certain regions and sectors.
