The World Bank warned that foreign direct investment (FDI) flows to developing economies have fallen to their lowest level since 2005. This is due to rising trade and investment barriers that pose a major threat to global efforts to mobilize financing for development. FDI is the primary driver of economic growth and improved living standards.
According to a World Bank report, developing economies received only $435 billion in FDI, the lowest level since 2005. This coincides with a significant slowdown in FDI flows to advanced economies. High-income economies received only $336 billion in 2023, the lowest level since 1996.
FDI flows to developing economies in 2023 amounted to only 2.3 percent, nearly half the figure during the peak year of 2008.
Source (Al-Sharq Al-Awsat Newspaper, Edited)
