By Economy Desk
The 2025 World Investment Report by United Nations forecast’s a volatile 2025 rendered by the pressures of continued reduced FDI investment bolstered by lowering Investor confidence, geopolitical tensions, reduced project development financing without technology.
“The World Investment Report 2025 arrives at a moment when that mirror reflects both strain and opportunity. The global economy continues to grapple with a complex set of challenges: mounting debt, persistent underperformance in GDP growth, geopolitical tensions, and structural shifts in trade and investment flow.” Rebeca Grynspan, Secretary-General of UNCTAD echoed in the Report’s Foreword.
Furthermore, “Sectoral trends showed lower investment in most infrastructure sectors. Project announcements in supply chain–intensive industries held steady. Digital sectors, in contrast, saw a doubling of project values. The growing weight of FDI in digital economy sectors is reflected in the composition of the top 100 MNEs; technology firms now account for more than 20 percent of their revenues.” The Report said.
With the recent Trump initiated pulling out of non returning investment having brought a blow to sustainable development the report noted that 2024 saw a downward trend in finance invested for Sustainable Development goals further heightening developing world societies.
“Goals investment in developing countries dropped by a quarter of a third across infrastructure, renewable energy, water and sanitation, and agrifood systems. Only the health sector saw positive growth in 2024, albeit from a small base.” The report said.
It was not all negative forecast from the report as vast other positive realisations on the growth of the digital economy, the potential of digitalisation if accessible to everyone,
“One bright spot is the digital economy, but the growth in this sector remains highly uneven. Investment in digital infrastructure is essential to closing the digital divide. Digital connectivity is a powerful driver of progress – if we ensure it reaches everyone.” UN Secretary General Antonio Guterres also said in the Report’s preface.
“The digital economy is expanding at an annual rate of 10 to 12 per cent, outpacing global GDP growth and accounting for a rising share of value creation worldwide.” Grynspan also concurred.
Furthermore, “The number of projects announced in industrial sectors increased slightly (by 3 per cent), but their value fell by 5 per cent. Nonetheless, at $1.3 trillion, the value of greenfield announcements remained at historically high levels – the second highest on record.” The Report highlighted.
As the world tries to fully rebound from COVID 19, the current global tensions as seen in th Russia- Ukraine war, Israel -Palestinian and Iran war, Trump’s taxing regime, corruption and meal administration among other ills, it remains that the global economy, for the poor, will thrive.