Global Foreign Direct Investment Volume Falls to $1.33 Trillion

According to the World Investment Report 2024 released by the United Nations Conference on Trade and Development (UNCTAD), the global volume of foreign direct investment (FDI) fell by 2% to $1.33 trillion in 2023, as reported by the International Investors Association (YASED).

YASED provided an assessment of the World Investment Report 2024, published by UNCTAD today.

The report, which analyzes FDI trends and investment realizations at the global, regional, and national levels, also offers policy and strategy recommendations to increase FDI in developing countries.

The report highlighted that the global FDI volume dropped from $1.36 trillion to $1.33 trillion, marking a 2% decline in 2023. It noted, “Excluding FDI flows from European countries that mediate the transfer of investments to other countries, the decline in global FDI flows exceeds 10%. The decrease in project financing poses a significant risk to achieving sustainable development goals. The report predicts that 2024 will be a challenging year. However, if financing opportunities improve and efforts to facilitate investments yield positive results, a limited recovery may be observed in the remainder of the year.”

According to the report, Turkey’s share of global FDI flows decreased from 1% to 0.8% in 2023. The report stated that Turkey, along with the United Arab Emirates and Saudi Arabia, attracted more FDI projects compared to the previous year. Turkey was noted as the country attracting the most manufacturing industry projects in Western and Central Asia.

The initial briefing on the main theme of this year’s report was provided by Dr. Amelia Santos-Paulino, Head of Investment Research at UNCTAD, during the Global Investment Days event organized by YASED in Ankara on June 5.

The report emphasized that digital government solutions can significantly contribute to simplifying investment processes, facilitating investor access to information, increasing transparency, and aligning administrative processes. It indicated that initiatives in these areas are increasing day by day.

The statement concluded, “The YASED Global Investment Days 2024 program will conclude in the coming days with events featuring UNCTAD, the Presidential Investment Office, and YASED presidents and representatives. These events will evaluate Turkey’s FDI strategies and performance.”

source: prepared by Melisa Beğiç

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