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Global Investment Decline May Worsen Due to Tariffs, UN Trade Agency Warns

  • On Thursday, UNCTAD published its 2025 World Investment Report, highlighting that worldwide foreign direct investment declined for the second year running in 2024.
  • The report attributes the decline to intensified trade tensions, tariff uncertainties, and geopolitical divisions that increased investor risk and lowered growth projections.
  • Additional findings show that foreign direct investment fell by 11% to $1.5 trillion, with a 58% decrease in Europe and an 18% drop in South America, while developing Asia and Africa saw increases.
  • Richard Bolwijn highlighted that deal activity and new project announcements reached historic lows in early 2025, with the mergers and acquisitions sector experiencing a downturn comparable to that seen during the global financial crisis. He added that tariffs have led to heightened investor uncertainty, causing delays in project development.
  • The report suggests that reversing this downward trend requires increased capital aligned with sustainable development goals, as the current investment pullback threatens long-term growth and developing countries' integration into global value chains.
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FDI fell 11% last year worldwide and no recovery is expected. International

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NBC Chicago broke the news in Chicago, United States on Thursday, June 19, 2025.
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