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Global investment slowing, drifting away from development priorities: UNCTAD Secretary-General
CAIRO - 19 June 2025: Global investment flows are showing signs of weakness and are increasingly shifting away from supporting sustainable development, especially in the world's most vulnerable economies, according to Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), Rebecca Greenspan.
Speaking at the launch of the World Investment Report 2025 in Cairo, Greenspan said the global foreign direct investment (FDI) figure of $1.5 trillion in 2024, reflecting a 4% headline increase, was inflated by conduit flows through a small number of European economies. When these flows are excluded, underlying global FDI actually fell by 11%, marking the second consecutive annual decline.
'Global investment is not just slowing, it's pulling away from development,' she warned.
Greenspan cited persistent global challenges, including geopolitical tensions, rising trade barriers, mounting investor uncertainty, and tight financial conditions, all of which continue to suppress productive, long-term investment.
The report notes contrasting regional trends: Africa saw a 75% surge in inflows, buoyed by stronger investment facilitation and a landmark project in Egypt, while Southeast Asia remained a hub for greenfield investment. In contrast, parts of Latin America and Western Asia saw stagnation or decline.
Investment in SDG-related sectors fell sharply across most areas, particularly in infrastructure, water and sanitation, and agrifood systems. Only the health sector recorded a modest increase in project numbers. Project finance, a key tool for infrastructure development, dropped by 26% globally.
Greenspan emphasized that low-income and vulnerable countries continue to receive only a small share of global investment, held back by structural challenges including weak infrastructure and political instability.
She called for a reformed global investment framework that can better align capital with sustainable development needs. 'We must scale up sustainable finance, close the digital divide, and support countries in mobilizing private investment through new tools and better policies,' she said.
'The time to redirect investment toward building resilient, inclusive, and sustainable economies is now,' Greenspan concluded.
