Global Investment Trends Monitor, No 47 Un Trade And Development Unctad

31 May Global Investment Trends Monitor, No 47 Un Trade And Development Unctad

Posted at 15:45hin Forex Investingbyrusti

In 2023, the United States of America remained the largest destination economy for FDI. The global investment environment remains challenging, with geopolitical and economic fragmentation posing hurdles. Investment facilitation aims to simplify procedures for investors by increasing access to information, enhancing transparency and streamlining administrative processes. UNCTAD’s Investment Policy Reviews (IPRs) aim how to buy sasol shares to help countries improve their investment policies with a view to achieving the Sustainable Development Goals (SDGs). The report proposes a Global Action Compact for Investment in Sustainable Energy for All. It contains a set of guiding principles covering the three objectives of the energy transition – meeting climate goals, providing affordable energy for all and ensuring energy security.

Global Investment Trends Monitor, No. 46

The report highlights the importance of lowering the cost of capital for clean energy investments in developing countries and supporting them more in their investment planning and project preparation. Tight financing conditions led to a 26% fall in international project finance deals, critical for infrastructure investment. International project finance is crucial for the poorest countries, making them more vulnerable to the global downturn in this type of investment.

World Investment Report 2023

investment

In 2023, global foreign direct investment (FDI) flows decreased marginally by 2% to $1.33 trillion. While flows to developed economies increased by 9% to $464 billion, flows to developing economies fell by 7% to $867 billion, largely because FDI inflows in developing Asia fell by 8% to $621 billion. FDI to developing Americas was almost stable, decreasing by 1% to $193 billion. The cost of capital is a key barrier to energy investments in developing countries, which are seen as riskier. Partnerships between international investors, the public sector and multilateral financial institutions can greatly reduce the cost of capital.

Global foreign direct investment remains weak

In 2023, foreign direct investment (FDI) outflows from developed economies increased by 4% to $1.06 trillion. The value of FDI outflows from developing economies decreased by 11% to $491 billion. International investment project announcements, including greenfield (mainly industry), project finance (mainly infrastructure) and cross-border merger and acquisitions (M&As), were mostly in negative territory. International project finance and M&As suffered the most from higher financing costs in 2023, with 21% and 16% fewer deals, respectively.

Investment Policy Hub

The 2023 value as GDP percentage, 1.3%, is less than a third of the share in 2000. Following a decline in 2023, global foreign direct investment (FDI) remained weak in the first half of 2024 amid a challenging international investment environment. Globally, the number of investment policy measures in 2023 matched the five-year average, with about three quarters favorable to //www.easyequities.co.za/ investors.

The top 5 economies for FDI outflows in 2023 were the United States of America, Japan, China, Switzerland and Hong Kong (China).
India and West and Central Asia also saw significant drops, while South-East Asia held steady.
In 2023, 86% of the investment policy measures taken by developing countries were more favourable to investors.
Although renewable energy investments have nearly tripled since the adoption of the Paris Agreement in 2015, most of the money has gone to developed countries.

Most recent IIAs

investment

Notably, sustainable bond issuance has grown fivefold over the past five years.