Latest news with #RebecaGrynspan
Fibre2Fashion
7 days ago
- Business
- Fibre2Fashion
Global FDI falls 11% in 2024 amid mounting uncertainty: UNCTAD
Global foreign direct investment (FDI) fell by 11 per cent in 2024 to $1.49 trillion, marking the second consecutive year of decline and confirming a deepening slowdown in productive capital flows, according to the UN Trade and Development (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)
Zawya
20-06-2025
- Business
- Zawya
Global FDI rose 4% in 2024 to $1.5trln: UNCTAD
GENEVA - The United Nations Conference on Trade and Development (UNCTAD) revealed a decline in global foreign direct investment (FDI) value by 11 percent, marking a second consecutive year of contraction. According to UNCTAD's World Investment Report 2025, issued Thursday in Geneva, global FDI increased by 4 percent in 2024 to reach US$1.5 trillion. However, this rise was driven in part by volatile financial flows through several European economies, which often act as investment transit hubs. The report stressed that the findings underscore the urgent need to reshape investment and finance systems to support inclusive and sustainable growth. The report comes ahead of the Fourth International Conference on Financing for Development, which will bring world leaders together to address the widening gap between capital flows and development needs. UNCTAD noted that investment fell sharply in developed economies, particularly in Europe, while flows to developing countries remained broadly stable. Rebeca Grynspan, Secretary-General of UNCTAD, said fragmentation and volatility are distorting investment flows, adding that the investment landscape in 2024 was shaped by geopolitical tensions, trade fragmentation, and intensifying competition in industrial policies. She explained that these dynamics, coupled with elevated financial risks and uncertainty, are redrawing global investment maps and undermining long-term investor confidence. The report highlighted a 22 percent decline in FDI to developed economies, including a 58 percent plunge in Europe, while North America bucked the trend with a 23 percent increase, led by the United States. Regional trends varied: Africa saw a 75 percent surge in FDI, driven by a single large project in Egypt. Excluding this, inflows rose by 12 percent, supported by investment facilitation and regulatory reforms. Asia maintained its position as the leading recipient region. Despite a slight 3 percent decline overall, Southeast Asia recorded a 10 percent rise in FDI to US$225 billion — the second-highest level on record. In contrast, Latin America and the Caribbean saw a 12 percent drop in total inflows, although announcements of new projects rose in key markets such as Argentina, Brazil and Mexico. The report affirmed that the Middle East maintained strong FDI inflows, supported by economic diversification efforts in the Gulf region. FDI flows among structurally vulnerable economies varied: they increased by 9 percent in least developed countries (LDCs) and by 14 percent in small island developing states (SIDS), but declined by 10 percent in landlocked developing countries (LLDCs). Across all three groups, investment remained heavily concentrated in a small number of countries.
Free Malaysia Today
20-06-2025
- Business
- Free Malaysia Today
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.
Scoop
19-06-2025
- Business
- Scoop
World News In Brief: Global Investment Plunges, Hurricane Season In Haiti, Rising Cholera And Hunger In South Sudan
19 June 2025 Their latest data shows that the outlook for international investment this year 'is negative', a sharp course correction from January, when 'modest' growth seemed possible. The reasons for this range from trade tensions and tariffs whose main effect has been a 'dramatic increase in investor uncertainty', said UNCTAD Secretary-General Rebeca Grynspan. She said that investment in renewable energy, water and sanitation fell by some 30 per cent and that agriculture saw a 19 per cent drop in investor confidence. Only the health sector saw an increase of nearly 20 per cent, Ms. Grynspan said, although that only accounts for 'less than $15 billion globally'. 'Very real consequences' 'Behind those numbers are very real consequences. Jobs not created,' she said. 'Infrastructure not built, sustainable development delayed. What we see here is not just a downturn. It is a pattern.' Ms. Grynspan also cited 'growing geopolitical tensions' in addition to rising trade barriers around the world as reasons for the fall in global investment for development. In critical sectors as hi-tech industries and rare earth minerals, governments are also tightening screening measures on proposed foreign investment, the UN agency noted. Supplies to limit hurricane impact in Haiti critically low The Humanitarian Country Team in Haiti warned Wednesday that funding and pre-positioned contingency supplies are critically low ahead of what is forecast to be an above-average hurricane season. Haiti is highly vulnerable to extreme weather, with 96 per cent of the population at risk. Forecasts project 12 to 19 tropical storms and up to five major hurricanes this year. The alert comes as the fragile island nation grapples with a worsening humanitarian crisis. Armed gangs control much of the country, the collapse of essential services and growing displacement have left 5.7 million people food insecure, 1.3 million displaced and 230,000 living in makeshift shelters ill-equipped to withstand severe weather. Limited preparations Humanitarian actors have pre-positioned limited stocks of essential items, but they are at a record low for a hurricane season posing such high risk. For the first time, Haiti will begin the hurricane season without pre-positioned food supplies or the financial resources necessary to initiate a rapid response. Meanwhile, UN Humanitarian Office (OCHA) is coordinating missions with UN agencies and partners to assess how to safely resume aid operations in high-need areas, following their suspension on 26 May due to insecurity. 'I am deeply concerned for communities, families, and vulnerable groups who have already been affected by violence and are living in precarious conditions,' said Ulrika Richardson, Humanitarian Coordinator in Haiti, calling for immediate support. As of mid-June, the $908 million Humanitarian Response Plan for Haiti is just 8 per cent funded. Worsening cholera and hunger in South Sudan OCHA raised the alarm on Thursday over rising malnutrition and cholera cases in war-torn South Sudan. An estimated 2.3 million children under five urgently need treatment for acute malnutrition, a 10 per cent increase since last July. This crisis is unfolding amid the world's most severe cholera outbreak this year, with almost 74,000 cases and at least 1,362 deaths reported as of 16 June. The start of the rainy season and waning immunity risk a significant surge in infections. UN response The 2025 Humanitarian Needs and Response Plan for South Sudan is only 20 per cent funded. Despite limited resources and many challenges, the UN and partners have scaled up efforts, delivering vaccines and life-saving aid to contain the disease and protect the most vulnerable. 'This dire situation is a stark reminder that we need funding urgently to expand food assistance, to expand nutrition and expand health services to those who need it the most,' said UN Spokesperson Stéphane Dujarric at the daily briefing in New York.
Khaleej Times
19-06-2025
- Business
- Khaleej Times
UAE attracts $45.6 billion in FDI in 2024, ranks in world's top 10
The UAE ranked among the world's top 10 destinations for foreign direct investment (FDI) in 2024, as inflows surged by nearly 49 per cent to reach $45.6 billion (Dh167.6 billion), up from $30.68 billion the previous year, according to a United Nations report. The World Investment Report 2025, released on Thursday by the UN Conference on Trade and Development (UNCTAD), revealed that the UAE climbed from 13th place in 2023 to 10th place in the latest global ranking. The UAE accounted for a dominant 55.6 per cent of total FDI inflows into the Middle East, which received $82.08 billion in 2024 – an increase from $78.39 billion the previous year. Other major recipients in the region included Saudi Arabia ($15.73 billion), Türkiye ($10.59 billion), and Oman ($8.68 billion). 'A strong rebound of flows in the UAE helped lift sub-regional figures, even as flows to Saudi Arabia and other Gulf Cooperation Council countries declined,' the UN report stated. The UAE's outward FDI also saw moderate growth, rising by 4.8 per cent to reach $23.4 billion in 2024. Globally, FDI rose marginally by four per cent to $1.51 trillion, up from $1.45 trillion in the previous year. However, UNCTAD noted that this figure was inflated by volatile flows through conduit economies. When adjusted for these factors, global FDI declined by 11 per cent – marking the second consecutive year of decline. 'Productive FDI fell by 11 per cent in 2024, continuing a downward trend,' warned UNCTAD Secretary-General Rebeca Grynspan. 'This is not just a downturn – it's a pattern.' Despite the overall decline, the United States remained the largest global recipient of FDI and led in both greenfield project announcements and international project finance (IPF) deals. Other top destinations included Brazil, Egypt, the UAE, Mexico, India, Indonesia, and Vietnam. Greenfield investment activity was especially strong in India and the UAE, while IPF deals were concentrated in a few mature markets and large emerging economies, the report added.
