World Bank flags drop in FDI to developing countries

WASHINGTON: The World Bank said in a report Monday that foreign direct investment (FDI) into developing economies has hit the lowest level since 2005, citing growing trade and investment barriers.

Developing countries received just $435 billion of such investment in 2023, the Washington-based development lender added, noting this was the latest year for which data was available.

As a share of gross domestic product (GDP), FDI flows to developing economies were at 2.3 percent in 2023 — about half the level of their peak in 2008.

“What we’re seeing is a result of public policy,” said World Bank chief economist Indermit Gill, noting that investment is falling while public debt is reaching new highs.