GENEVA (Reuters) – International international direct funding flows might rise modestly in 2024 after a marginal improve final 12 months resulting from larger funding in some European economies, the United Nations commerce physique stated on Wednesday.
Overseas direct funding flows can embody investments made by firms or governments into different international locations or firms or initiatives in these international locations.
“Looking ahead, a modest increase in FDI flows in 2024 appears possible, as projections for inflation and borrowing costs in major markets indicate a stabilisation of financing conditions for international investment deals,” the United Nations Convention on Commerce and Growth stated.
The U.N. commerce organisation burdened, nevertheless, that many elements, together with geopolitical dangers and excessive debt ranges in some international locations, might hinder international direct funding.
In 2023, international direct funding stood at an estimated $1.37 trillion, a marginal improve of three% in contrast with the earlier 12 months. UNCTAD attributed this slight improve to larger funding in some European international locations.
Overseas direct funding flows to growing international locations declined final 12 months, falling by 9% to $841 billion, with a 12% drop within the growing international locations of Asia and a 1% fall in Africa, UNCTAD stated.