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Southeast Asia witnessed a 10 per cent increase in foreign direct investment (FDI) in 2024, reaching $225 billion—the second-highest level in the region’s history, according to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2025 released on Thursday.
The region’s robust economic growth, expanding manufacturing sector, and improving consumer markets made it an attractive destination for global investors, added the report.
Despite this regional success, global FDI declined by 11 per cent in 2024 for the second consecutive year, reflecting sluggish investment in productive capital flows worldwide. Asia retained its top spot as the largest FDI recipient region, although investment dropped slightly by 3.0 per cent from the previous year.
UNCTAD reported that global FDI rose marginally by 4.0 per cent to $1.5 trillion in 2024, mainly due to volatile financial flows through a few European economies, often used for investment relocation.
The report highlighted that advanced economies, especially Europe, saw steep FDI declines. In contrast, developing nations remained stable but struggled with stagnant capital in infrastructure, energy, and technology sectors—vital for job creation and economic progress.