US EditionWorld Bank flags drop in FDI to developing countries
- The World Bank reported that foreign direct investment to developing countries dropped sharply to $435 billion in 2023, the lowest since 2005.
- This decline occurred amid rising global trade and investment barriers as many governments introduced more restrictive policies, with half of FDI-related measures announced in 2025 being restrictive.
- FDI accounted for about half of external financing to developing economies and was concentrated in a few countries, while fewer large projects and less investment in clean energy and health care were observed in 2023.
- Indermit Gill, the World Bank's chief economist, attributed the decline in FDI to public policy decisions, highlighting that foreign investment is hitting historic lows while public debt continues to rise sharply.
- The World Bank emphasized that easing investment barriers, improving institutional quality, and enhancing trade cooperation are essential to revive FDI and support sustainable development.
23 Articles
23 Articles
Sub-Saharan Africa’s FDI flows drying up: Report
Sub-Saharan Africa received the lowest share of foreign direct investment inflows of all developing economy regions during 2012-23, new World Bank research showed. Globally, flows of FDI for developing economies fell to their lowest level since 2005 due to “rising trade and investment barriers,” the report found, reaching only $435 billion last year. Sub-Saharan Africa received around 5% of cumulative FDI flows in this period. The report’s autho…
Foreign Investment to Developing Nations Drops Sharply as Countries Raise Barriers
The World Bank says foreign investment in developing countries fell to its lowest level in almost 20 years in 2023. Money from businesses and investors abroad, known as foreign direct investment (FDI), dropped to $435 billion for these countries. Wealthier countries also saw a big fall, getting only $336 billion—the lowest since 1996. The United […]
Scotland’s independence drive before 2014 did not reduce inward investment
stewartb With reference to the graph above, what happened to Scotland’s FDI performance pre-2015, in the years of uncertainty over what Scotland’s people would opt for in a late 2014 referendum. Would they choose that most awful of outcomes, independence? Surely that would have given foreign investors cause to pause – no longer in a UK, out of the EU – fears a plenty? So what happened? From Business Insider (May 27, 2015): ‘Survey: Slight fall i…
The World Bank report shows that reducing foreign direct investment threatens the sustainability of developing economies.
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