Global FDI falls 11% in 2024 amid mounting uncertainty: UNCTAD
Although headline FDI appeared to rise by 4 per cent to $1.5 trillion, the increase was largely due to volatile financial conduit flows through several European economies, which often serve as transfer points for investments, as per the World Investment Report 2025 released by UNCTAD.
Investment dropped sharply across developed economies, particularly in Europe. Developing countries appeared broadly stable, with a marginal 0.2 per cent rise. However, this concealed a deeper crisis, as capital is stagnating or bypassing sectors that matter most—such as infrastructure, energy, and technology.
Global FDI fell 11 per cent to $1.49 trillion in 2024, marking a second year of decline, as per UNCTAD. While Africa saw strong growth due to a large project, Europe's inflows plunged. Investment in key sectors like energy and infrastructure dropped. Digital FDI rose 14 per cent but remained concentrated. UNCTAD urges coordinated reforms to close a $4 trillion sustainable development financing gap.
'Too many economies are being left behind not for a lack of potential—but because the system still sends capital where it's easiest, not where it's needed,' said Rebeca Grynspan, UN Trade and Development secretary-general . 'But we can change that. If we align public and private investment with development goals and build trust into the system, domestic and international markets will bring scale, stability and predictability. And today's volatility can become tomorrow's opportunity.'
Regionally, Africa surged 75 per cent due to a major Egyptian project. Asia retained its top position despite a 3 per cent dip, and Latin America declined by 12 per cent. Among vulnerable groups, FDI rose in least developed countries (9 per cent) and small island states (11 per cent) but fell 10 per cent in landlocked nations.
Investment in development-critical sectors showed worrying signs. International project finance dropped 26 per cent, with renewable energy (-31 per cent), transport (-32 per cent), and water/sanitation (-30 per cent) most affected.
Despite a 14 per cent rise in digital economy FDI—driven by Information and Communication Technology (ICT) and semiconductors—80 per cent of new digital projects were concentrated in just 10 countries, leaving many developing nations behind due to gaps in infrastructure, policy, and skills, added the release.
UNCTAD stressed that bridging the estimated $4 trillion annual financing gap for sustainable development in developing economies requires coordinated reforms and long-term, inclusive capital. It proposed a seven-point agenda focusing on better governance, digital infrastructure, innovation ecosystems, skill-building, and global digital investment standards.
Fibre2Fashion News Desk (SG)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
an hour ago
- Indian Express
No Trump-Putin deal in Alaska, India faces tough choices: Here's why
If India was counting on a clear and positive outcome from the Alaska summit to avert the additional 25 per cent US tariff on Indian exports, Donald Trump and Vladimir Putin did not deliver — at least not by last night. The failure to reach an agreement leaves a dark cloud of uncertainty over India's trade negotiations with Washington. Despite a warm welcome from President Trump and President Putin's friendly references to America, the two leaders could not bridge their differences on Ukraine. At their joint press appearance, Putin spoke of an important 'agreement' emerging from the talks, while Trump claimed 'considerable progress' but confirmed there was no deal. 'There are just a very few [sticking points] left,' Trump said. 'Some are not that significant. One is probably the most significant — but we have a very good chance of getting there,' he added, without identifying the issues. He promised to brief Ukrainian and European leaders on his discussions with Putin. Putin, for his part, expressed hope that US allies would not undermine any understandings reached with Trump. His emphasis remained on improving bilateral ties with Washington while holding firm to Russia's core positions on the war. He noted that Russia and the US are neighbours across the Northern Pacific, evoked their wartime cooperation during the Second World War, and highlighted the potential for broad commercial and strategic engagement. Trump has invested significant political capital in building a partnership with Moscow. Yet deep divisions persist within his own administration and across the Atlantic on the terms of peace and reconciliation with Russia. European allies remain wary of any settlement that might reward Moscow's aggression, while Trump has been pushing for a breakthrough that he can claim as a foreign policy success. India's immediate concern lies in the punitive measures Trump has tied to his Ukraine strategy. As part of the effort to pressure Putin into accepting a ceasefire, Washington announced an additional 25 per cent tariff on Indian exports — explicitly linked to Delhi's continued purchase of Russian oil. Since the 2022 invasion, India has become a major buyer of discounted Russian crude, a move that has improved its energy security but drawn sharp criticism from the West. The US administration argues that targeting India, among other large importers, will cut into Moscow's revenues and push it toward compromise in Ukraine. On the eve of the summit, US Treasury Secretary Scott Bessent warned that more tariffs could follow if no peace deal emerged. He urged Europe, which imports refined petroleum products from India, to join Washington in imposing severe sanctions on countries still trading extensively with Russia. Meanwhile, a major bill moving through Congress would authorise the president to impose tariffs of up to 500 per cent on states helping sustain Moscow's war economy. As Delhi awaits clarity on the summit's outcome, the trajectory of the Ukraine talks, and the next steps in Washington, one conclusion is hard to avoid: India's appetite for cheap Russian oil over the last three years has bound it, however indirectly and unwittingly, to the geopolitics of war and peace in Ukraine. The Modi government now faces a difficult calculation — how much political and economic cost it is prepared to bear to maintain the Russian oil connection. (C Raja Mohan is a contributing editor on international affairs for The Indian Express)
&w=3840&q=100)
Business Standard
an hour ago
- Business Standard
Talks with Putin 'productive' but no Ukraine peace deal yet, says Trump
US President Donald Trump hailed his meeting with Russian President Vladimir Putin as 'extremely productive' but confirmed that no final agreement had been reached to end the war in Ukraine. Speaking in Anchorage, Alaska, after the talks, Trump said there was 'a very good chance' of bridging the remaining differences but insisted he would consult Nato allies and Ukrainian President Volodymyr Zelenskyy before committing to any deal. 'There's no deal until there's a deal,' Trump remarked, highlighting that while many points had been agreed, one significant sticking point remained unresolved. Putin, who addressed the event first, described the discussions as 'constructive' and suggested they had covered a broad agenda. He mentioned potential cooperation in trade, Arctic development, and space exploration, alongside talks on Ukraine. Longest face-to-face meeting yet The session, lasting more than two and a half hours, was the longest personal exchange between the two leaders, surpassing their 2018 Helsinki summit. Despite the extended discussions, neither offered clarity on the points of agreement, leaving European capitals and Kyiv uneasy about the possibility of being sidelined in a future settlement. Analysts noted the deliberate lack of detail. Samuel Charap, a senior political scientist at the RAND Corporation, described the encounter as 'a lot of upbeat vibes with very little by way of specifics.' He added that Trump appeared disciplined in sticking to pre-agreed talking points and avoiding disclosures. A carefully orchestrated encounter Friday's summit began with high symbolism. Putin's arrival marked his first visit to the US in nearly a decade. Trump greeted him warmly on the tarmac in Alaska, shaking his hand, patting his arm, and engaging in light conversation. A B-2 bomber flyover served as a show of US military strength, yet the two leaders soon departed together in the presidential limousine. The ride offered an unplanned opportunity for private conversation, despite earlier White House statements that the summit would take place in a 'three-on-three' format with aides present. That dynamic gave Putin direct access to Trump before the formal talks began. Assurances to allies Ahead of the meeting, Trump publicly assured Nato members and Ukraine that he would not negotiate territorial swaps or security guarantees without their consent. 'I've got to let Ukraine make that decision,' he said, emphasising that his goal was to bring both sides to the table rather than dictate terms. For Putin, the meeting was a platform to attempt a reset in US-Russia relations and to explore the possibility of sanctions relief. The Russian leader, however, maintained maximalist territorial demands and refused to halt military operations, confident in his forces' slow but steady battlefield advances. Invitation to Moscow Putin closed the event by inviting Trump to Moscow for their next meeting. The US president responded cautiously, but did not rule out the prospect. 'I'll get a little heat on that one,' Trump said with a smile, 'but I could see it possibly happening.' While the summit ended without questions from reporters, its tone, a blend of cordiality, strategic posturing, and withheld detail, left both optimism and apprehension in its wake. With Trump set to brief Nato and Kyiv, the coming days may determine whether the 'productive' spirit translates into substantive progress towards ending the conflict.
The Hindu
2 hours ago
- The Hindu
The Hindu Morning Digest: August 16, 2025
Trump says no agreement on ending Russia's war in Ukraine President Donald Trump and Russia's Vladimir Putin said they reached an understanding on ending the war in Ukraine after meeting for about 2 1/2 hours on Friday in Alaska, but offered no details on what they agreed and left without answering questions. In brief remarks, Mr. Putin said the pair had hammered out an 'understanding' on Ukraine and warned Europe not to 'torpedo the nascent progress.' Speaking moments later, Mr. Trump said he'd yet to speak with Ukrainian President Volodymyr Zelenskyy but that he'd be speaking to him and European leaders soon. He suggested there hasn't been a deal yet. Six dead, five injured in dargah wall collapse near Humayun's Tomb in Delhi Six people died and five others were injured after a portion of the wall and the roof of the Dargah Masjid Pattawali collapsed on Friday (August 15, 2025) due to the heavy rains, according to police. The dargah is located near the boundary wall of the 16th-century Humayun's Tomb in Delhi, a UNESCO world heritage site, but is not part of the complex. Major GST shake-up: 12% and 28% slabs to be axed The Centre has proposed to reduce the number of slabs under the Goods and Services Tax system, retaining the 5% and 18% slabs, while introducing a lower concessional rate below 1% and a high 'sin rate' of 40% on just five to seven items each, according to official sources. This would entail entirely doing away with the 12% and 28% tax brackets. Of these, 99% of items currently in the 12% slab will be moved to the 5% rate and 90% of goods and services in the 28% bracket will move to 18%. There will be no cess of any kind over and above the GST rates. Supreme Court Collegium cannot dictate names to High Court Collegiums: CJI Gavai Chief Justice of India B.R. Gavai on Friday (August 15, 2025) clarified that the powerful Supreme Court Collegium, which he heads, cannot 'dictate' names to High Court Collegiums for judicial appointments. 'Even the Supreme Court Collegium cannot dictate the High Court Collegium to recommend the names,' Chief Justice Gavai said in his Independence Day address at a function organised by the Supreme Court Bar Association (SCBA) on the court's lawns. Government proposal in 2024 for a panel on 'demographic challenges' never took off Prime Minister Narendra Modi announced a High-Power Demography Mission on Friday (August 15, 2025). However, a similar committee announced before the 2024 Lok Sabha Election was never formed .In her Interim Budget speech on February 1, 2024, Finance Minister Nirmala Sitharaman said that the committee will be constituted to consider the challenges arising from 'fast population growth and demographic changes'. The terms of reference and the composition of the committee were never notified. Deadline looms to avert Air Canada strike Air Canada faced a midnight deadline Friday to avert a flight attendants strike that would shut down service, creating summer travel chaos for the carrier's 130,000 daily passengers. The Canadian Union of Public Employees, which represents Air Canada's 10,000 flight attendants, says that in addition to wage increases it wants to address uncompensated ground work, including during the boarding process. Dozens of opposition members in Turkiye arrested: media reports Turkish police arrested 44 people Friday (August 15, 2025) in the Opposition stronghold of Istanbul, including the mayor of the central district of Beyoglu and several of his close advisers, the Anadolu news agency reported. The latest wave of arrests, over alleged corruption, is part of a months-long crackdown targeting the main Opposition Republican People's Party (CHP). Istanbul Mayor Ekrem Imamoglu, considered the biggest political rival to President Recep Tayyip Erdogan, was arrested in March and subsequently imprisoned. Women are key drivers of India's growth, says PM Modi Prime Minister Narendra Modi on Friday (August 15, 2025) said that women in India were not only beneficiaries of a rising economy but also its key drivers. 'From start-ups to the space sector, from the playing fields to the armed forces, our daughters are making their mark. Today, with pride, women stand shoulder to shoulder in the country's journey of development,' Mr. Modi said in his address to the nation on Independence Day. Renukaswamy murder case: Darshan, other accused kept in separate cells; two more accused sent to jail Kannada actor Darshan Thoogudeepa and the other accused, who were re-arrested on Thursday in connection with the Renukaswamy murder case after the Supreme Court cancelled their bail, are being held in the admission barracks in separate cells of Parappana Agrahara Central Prison. The Supreme Court had warned of strict action if any special treatment is given to him after the previous episode. Contacts with the U.S. did not cease even during Biden's presidency: Senior Russian interlocutor on Russia-U.S. talks Russia's back channel links intensified under President Donald Trump, but Russian representatives had maintained contacts even with the previous administration under President Joe Biden, said a senior interlocutor who has been part of the back channel negotiations that helped in maintaining dialogue tracks between Russia and the United States in the last three and half years since the Ukraine crisis began. Sanjay Raut calls PM Modi 'Congressvadi', slams for using Swadeshi in speech Shiv Sena (UBT) MP Sanjay Raut criticised Prime Minister Narendra Modi's speech on Independence Day for using the slogan of swadeshi (self-reliance), saying he has become 'Congressvadi', as the idea of swadeshi was given by Mahatma Gandhi, Lokmanya Tilak, and Pandit Jawaharlal Nehru in pre-independence times. Chennai Grandmasters chess | Champion Keymer remains unbeaten; Pranesh clinches Challengers crown German Vincent Keymer capped a memorable triumph in the Quantbox Chennai Grandmasters chess tournament 2025 with a convincing win in the final round of the Masters section over American GM Ray Robson here on Friday. As unstoppable as Keymer was in the tournament, Indian GM M. Pranesh emerged champion in the Challenger category, though he suffered a defeat at the hands of IM G.B. Harshavardhan in the ninth and final round. Pranesh was helped by the fact that title contenders Leon Luke Mendonca and Abhimanyu Puranik fell to B. Adhiban and Pa. Iniyan, respectively. 'Coolie': Rajinikanth-Lokesh Kanagaraj starrer earns over ₹150 crore at box office on first day Coolie, featuring superstar Rajinikanth, has collected over ₹151 crore at the worldwide box office on its first day, emerging as the highest Tamil film ever to make the record. Directed by Lokesh Kanagaraj, the director behind projects such as Karthi's Kaithi, Vijay's Master and Leo, and Kamal Haasan's Vikram, the film released in the theatres worldwide on Thursday. The makers shared the box office numbers on the X handle on Friday.
