Global investment decline may worsen due to tariffs, warns UN trade agency
UNCTAD secretary-general Rebeca Grynspan said investment that has a real impact on jobs and infrastructure is going down. (EPA Images pic)
GENEVA : Global foreign direct investment (FDI) fell for the second consecutive year in 2024, with fears this year could be even worse as trade tensions rock investor confidence, the UN agency for trade and development said in a report published today.
FDI transactions, which do not include several European conduit economies, declined by 11%, indicating a significant reduction in actual productive investment activity, according to the UN Conference on Trade and Development (UNCTAD).
Geopolitical tensions and trade fragmentation contributed to lower investment last year as they created uncertainty, which UNCTAD secretary-general Rebeca Grynspan described as a 'poison' for investor confidence.
'We are even more worried about the picture in 2025…we already feel that investment is halted…tariffs are affecting growth,' Grynspan told Reuters, with short-term risk management being prioritised over long-term investment.
UNCTAD said its outlook for international investment in 2025 was negative due to trade tensions.
Early data for the first quarter of 2025 shows record low deal and project activity.
When several European conduit economies – which act as intermediary hubs where investments temporarily pass through before reaching their final destinations – are included, the data showed that FDI increased by 4% to US$1.5 trillion.
However, UNCTAD noted that this figure masks the reality that much of this investment is merely passing through these jurisdictions and was not productive.
'We see a very worrying tendency…Investment that has a real impact on jobs and infrastructure is going down,' she said.
Developed economies suffered a sharp drop in investment, with a 58% decrease in Europe.
North America, however, observed a 23% increase in FDI, led by the US, while countries in Southeast Asia reached the second-highest level of FDI on record with a 10% rise, representing US$225 billion.
Though capital inflows in developing countries were broadly stable, UNCTAD observed that capital was not being injected into crucial job-creating sectors such as infrastructure, energy and technology.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
27 minutes ago
- Malay Mail
Gorilla Announces $105 Million Registered Direct Offering of Common Stock
The offering is led by a $100 million investment from a single new fundamental institutional investor and includes additional participation from a large existing shareholder The proceeds will be used to establish performance guarantees and bid bonds, as well as meeting requirements in connection with bids for projects, and in relation to previously announced acquisitions [email protected] [email protected] London, United Kingdom - Newsfile Corp. - June 30, 2025 -(NASDAQ: GRRR) ("Gorilla" or the "Company"), a global solution provider in Security Intelligence, Network Intelligence, Business Intelligence and IoT technology, today announced that it has entered into a securities purchase agreement for ordinary shares with a $100 million investment from a single new fundamental institutional investor as well as participation from a large existing shareholder to raise $105 million of equity capital via a registered direct offering of 6,000,000 of its ordinary shares (or pre-funded warrants in lieu thereof) at an offering price of $17.50 per ordinary gross proceeds to the Company from the offering are expected to be approximately $105 million before deducting placement agent fees and other offering expenses payable by the Company. Gorilla intends to use the net proceeds from the offering for working capital needs, particularly to establish performance guarantees or bid bonds; establish statutory capital reserves and meet other requirements in connection with bids for various projects; in relation to previously announced acquisitions; and for other general corporate Partners Group, a division of American Capital Partners, is acting as the sole placement agent for the offering is expected to close on or about July 2, 2025, subject to the satisfaction of customary closing offering is being made pursuant to an effective shelf registration statement on Form F-3 (File No. 333-274053) previously filed with the Securities and Exchange Commission (the "SEC") on August 17, 2023, and declared effective on August 29, 2023. The offering is being made only by means of a prospectus supplement and the accompanying base prospectus that form a part of the registration statement. A final prospectus supplement relating to the offering will be filed with the SEC and will be available on the SEC's website at. Copies of the final prospectus supplement and the accompanying base prospectus relating to the offering, when available, may be obtained by contacting Titan Partners Group LLC, a division of American Capital Partners, LLC, 4 World Trade Center, 29th Floor, New York, NY 10007, by phone at (929) 833-1246 or by email atThis press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or in London U.K., Gorilla is a global solution provider in Security Intelligence, Network Intelligence, Business Intelligence and IoT technology. We provide a wide range of solutions, including Smart City, Network, Video, Security Convergence and IoT, across select verticals of Government & Public Services, Manufacturing, Telecom, Retail, Transportation & Logistics, Healthcare and Education, by using AI and Deep Learning expertise lies in revolutionizing urban operations, bolstering security and enhancing resilience. We deliver pioneering products that harness the power of AI in intelligent video surveillance, facial recognition, license plate recognition, edge computing, post-event analytics and advanced cybersecurity technologies. By integrating these AI-driven technologies, we empower Smart Cities to enhance efficiency, safety and cybersecurity measures, ultimately improving the quality of life for more information, please visit our website: This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Gorilla's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "might" and "continues," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, statements regarding relating the expected completion, timing and size of the offering, the Company's intended use of proceeds from the offering, Gorilla's ability to win additional projects and execute definitive contracts related thereto, along with those other risks described under the heading "Risk Factors" in the Form 20-F Gorilla filed with the SEC on April 30, 2025 and those that are included in any of Gorilla's future filings with the SEC. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Most of these factors are outside of the control of Gorilla and are difficult to predict. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Gorilla undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made except as required by law or applicable DowdProsek PartnersDave GentryRedChip Companies, Inc.1-407-644-4256 The issuer is solely responsible for the content of this announcement.
Malay Mail
3 hours ago
- Malay Mail
UN chief slams US-led aid retreat as poverty, hunger, debt spiral in Global South
SEVILLE, June 30 — UN Secretary-General Antonio Guterres urged the world to 'rev up the engine of development' at an aid conference in Spain today at a time when US-led cuts are jeopardising the fight against poverty and climate change. Dozens of world leaders and more than 4,000 representatives from businesses, civil society and financial institutions are gathering in the city of Seville for the June 30-July 3 conference to seek fresh impetus for the crisis-hit aid sector. But the United States is snubbing the biggest such talks in a decade, underlining the erosion of international cooperation on combating hunger, disease and climate change. Guterres told delegates at the opening of the conference that two-thirds of United Nations sustainable development goals set for 2030 were 'lagging' and more than US$4 trillion (RM16.8 trillion) of annual investment would be needed to achieve them. US President Donald Trump's gutting of his country's development agency, USAID, is the standout example. But Germany, Britain and France are also making cuts while they boost spending in areas such as defence. International charity Oxfam says the cuts to development aid are the largest since 1960. More than 800 million people live on less than US$3.0 a day, according to the World Bank, with rising extreme poverty affecting sub-Saharan Africa in particular. Disruption to global trade from Trump's tariffs and ongoing conflicts in the Middle East and Ukraine have dealt further blows to the diplomatic cohesion necessary for concentrating efforts on helping countries escape poverty. The crisis meant children going unvaccinated, girls dropping out of school and families suffering hunger, said Guterres. He urged the international community to 'change course' and 'repair and rev up the engine of development to accelerate investment' in 'a world shaken by inequalities, climate chaos and raging conflicts'. A blistering heatwave that is scorching southern Europe welcomed the delegates to the Fourth International Conference on Financing for Development, an example of the extreme weather that scientists say human-driven climate change is fuelling. 'Colonial debt' Kenya's William Ruto, Senegalese President Bassirou Diomaye Faye, Ecuador's Daniel Noboa, Angolan leader Joao Lourenco and Sudanese army chief Abdel Fattah al-Burhan were among prominent Global South leaders in Seville. Among the key topics up for discussion is reforming international finance to help poorer countries shrug off a growing debt burden that inhibits their capacity to achieve progress in health and education. The total external debt of the group of least developed countries has more than tripled in 15 years, according to UN data. Critics have singled out US-based bulwarks of the post-World War II international financial system, the World Bank and the International Monetary Fund, for reform to improve their representation of the Global South. Painstaking talks in New York in June produced a common declaration to be adopted in Seville that only went ahead after the United States walked out. The document reaffirms commitment to the UN development goals such as eliminating poverty and hunger, promoting gender equality, reforming tax systems and international financial institutions. The text also calls on development banks to triple their lending capacity, urges lenders to ensure predictable finance for essential social spending and for more cooperation against tax evasion. Coalitions of countries will seek to spearhead initiatives in addition to the so-called 'Seville Commitment', which is not legally binding. But campaigners have criticised the text for lacking ambition and have rung alarm bells about rising global inequality. Hundreds of demonstrators braved the sizzling heat in Seville on Sunday to demand change in international tax, debt and aid policies. 'Global South countries will never be able to decide how they want to do development if they are bound to the new colonial debt,' protester Ilan Henzler, 28, told AFP. — AFP
Malaysian Reserve
3 hours ago
- Malaysian Reserve
Prime Minister Anwar embarks on three-nation visit starting Tuesday
KUALA LUMPUR – Prime Minister Datuk Seri Anwar Ibrahim (picture) will undertake a series of visits to three countries – Italy, France, and Brazil – beginning July 1. This series of visits by the Prime Minister, beginning with a three-day official visit to Italy starting Tuesday, forms part of Malaysia's ongoing efforts to strengthen bilateral relations and promote economic cooperation at the global level. Malaysia's Ambassador to Italy, Datuk Zahid Rastam, noted that the Prime Minister's inaugural visit to Italy is being undertaken at the invitation of Italian Prime Minister Giorgia Meloni. 'This visit is expected to further strengthen bilateral relations between Malaysia and Italy across a wide range of sectors. It also reflects the government's commitment to exploring new initiatives in trade and investment, as well as cooperation in the fields of defence, energy, and agro-commodities,' he told reporters in Malaysia via Google Meet from Rome on Monday. According to Wisma Putra, the Prime Minister will attend the BRICS Summit in Rio de Janeiro, Brazil, as a partner country in the bloc comprising Brazil, Russia, India, China, and South Africa. Zahid stated that during the official visit to Italy, the Prime Minister will be accompanied by five Cabinet ministers: Foreign Minister Datuk Seri Mohamad Hasan, Transport Minister Anthony Loke, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu, Defence Minister Datuk Seri Mohamad Khaled Nordin, and Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. Also part of the delegation is Deputy Minister of Energy Transition and Water Transformation, Akmal Nasrullah Mohd Nasir. According to Zahid, the Prime Minister will also be accompanied by relevant senior government officials and a corporate delegation comprising representatives from 13 Malaysian companies across various sectors. He said the Prime Minister and his delegation are expected to arrive at Fiumicino Airport in Rome at approximately 7.50 pm on Tuesday, July 1, and that he is scheduled to host an engagement session with the Malaysian diaspora in Italy later that evening. On Wednesday, July 2, the Prime Minister will participate in a roundtable meeting with leading figures from Italian and Malaysian industries, in an event jointly organised by the governments of Malaysia and Italy known as the Malaysia–Italy Economic Partnership Roundtable, he said. He added that the roundtable meeting will involve more than 50 companies, associations, and industry representatives from both Malaysia and Italy. On the same day, the Prime Minister will hold meetings with Imam Yahya Pallavicini, Vice President of the Comunita Religiosa Islamica Italiana (COREIS), and Abdellah Redouane, Secretary-General of the Islamic Cultural Centre of Italy and the Mosque of Rome. According to Zahid, on Thursday, July 3, the Prime Minister will be interviewed by Rai News 24, a leading and influential television news network in Italy. In the interview, the Prime Minister is expected to speak on bilateral relations between Malaysia and Italy, trade and investment matters, as well as Malaysia's role as Chair of ASEAN 2025, he said. He further said that at midday on July 3, Anwar is scheduled to hold a bilateral meeting with Italian Prime Minister Giorgia Meloni at Palazzo Chigi. During the meeting, both sides will discuss a range of issues encompassing bilateral cooperation in economic sectors such as trade and investment, as well as collaboration in defence, renewable energy and the environment, agro-commodities, and the digital sector. Zahid added that the discussions will also cover people-to-people cooperation, including education, cultural exchanges, the tourism sector, as well as regional and international issues of mutual concern, such as the situation in the Middle East. He noted that the Prime Minister's visit to Italy is highly significant in reflecting the close ties between the two countries. During the visit, both leaders will reaffirm their countries' commitment to strengthening bilateral relations through more comprehensive cooperation. Accoarding to Zahid, the visit would provide the mandate and momentum to elevate Malaysia–Italy bilateral relations towards a more strategic partnership in the future. He said the visit as a whole will serve as a platform for the Prime Minister to articulate Malaysia's foreign policy, particularly the country's stands on regional and global issues on the international stage, while also highlighting Malaysia's current ASEAN Chairmanship. Zahid highlighted that in 2024, total trade between Malaysia and Italy amounted to RM14.61 billion, with Malaysian exports to Italy valued at RM6.71 billion and imports from Italy totalling RM7.89 billion. Overall, Italy is Malaysia's fifth-largest trading partner among European countries. — BERNAMA
