GENEVA (Xinhua): Global foreign direct investment (FDI) rose six per cent year-on-year to US$1.6 trillion in 2025 following two consecutive years of decline, but the recovery remained narrow, fragile and uneven, the United Nations Trade and Development (UNCTAD) said on Tuesday.
The World Investment Report 2026 released by UNCTAD showed that FDI inflows to developed economies grew by 11 per cent in 2025, while developing economies recorded only two per cent growth.
The world's top 20 host economies attracted more than 80 per cent of global FDI, underscoring a trend of increasing concentration, it said.
This trend is particularly shown in industries linked to technology, energy and industrial policy.
Strategic sectors, including artificial intelligence (AI) infrastructure, semiconductors, critical minerals, and energy-transition technologies and services, accounted for 44 per cent of global greenfield project values in 2025, up from just 16 per cent in 2020, the report noted.
Developing economies received more than half of global FDI in 2025, but growth was "modest and uneven" across regions, the report said.
According to UNCTAD, China maintained its position as a major player in two-way investment.
The UN trade body also noted that China's inward FDI is shifting from scale-driven expansion towards structural upgrading and quality improvement.
The composition of FDI inflows in the country continues to move towards advanced manufacturing, scientific and technological innovation, and modern services.
The report warned that the global investment recovery has not translated evenly into development opportunities.
It called for scrutiny of whether investment is expanding productive capacity, creating jobs, upgrading skills and facilitating technology transfer.
Looking ahead, UNCTAD projected that the global investment outlook for 2026 remains "difficult."
"Trade policy uncertainty, geopolitical tensions, conflicts, high financing costs and economic fragmentation continue to weigh on investment decisions,” it said.
UNCTAD noted that developing economies need more than investment promotion to compete.
Measures such as integrating into global value chains, improving trade facilitation and strengthening international cooperation are also essential. -- Xinhua
