Global foreign direct investment slumps
Global foreign direct investment (FDI) fell three per cent in the first half of 2025, extending a two-year slump, as trade tensions, high interest rates, and geopolitical uncertainty kept investors cautious, the UN Conference on Trade and Development said in its latest ‘Global Investment Trends Monitor’. The drop was driven by developed economies, where cross-border mergers and acquisitions (M&As) — which normally make up a large share of their FDI — fell 18pc to $173 billion. Developing economies fared better overall, with flows remaining flat. But trends diverged by region. Inflows rose 12pc in Latin America and the Caribbean and 7pc in developing countries in Asia, but fell 42pc in Africa.