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.
16 Articles
16 Articles
Global investment decline may worsen due to tariffs, UN trade agency warns
Global foreign direct investment fell for the second consecutive year in 2024, with fears this year could be even worse as trade tensions rock investor confidence, the United Nations agency for trade and development said in a report published on Thursday.


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MINUSTAH/Logan AbassiExtreme weather, such as flooding, as pictured here in Haiti, can impact heavily on the health of affected people. This article is published in association with United Nations. Global investment fell a full 11 per cent to $1.5 trillion last year – it’s a huge blow for developing nations, the UN trade agency, UNCTAD, said on Thursday. Their latest data shows that the outlook for international investment this year “is negative…
FDI fell 11% last year worldwide and no recovery is expected. International
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