World Bank flags drop in foreign investment to developing countries
WASHINGTON: The World Bank said in a report Monday that foreign direct investment (FDI) into developing economies has hit the lowest level since 2005, citing growing trade and investment barriers.
Developing countries received just $435 billion of such investment in 2023, the Washington-based development lender added, noting this was the latest year for which data was available.
As a share of gross domestic product (GDP), FDI flows to developing economies were at 2.3 percent in 2023 -- about half the level of their peak in 2008.
"What we're seeing is a result of public policy," said World Bank chief economist Indermit Gill, noting that investment is falling while public debt is reaching new highs.
"In recent years governments have been busy erecting barriers to investment and trade when they should be deliberately taking them down," he added in a statement.
Reversing this slowdown is "essential for job creation, sustained growth, and achieving broader development goals," urged World Bank deputy chief economist Ayhan Kose.
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