By Anjali Sharma
UNITED NATIONS- UN trade and development agency on Thursday said that the global investment fell a full 11 per cent to $1.5 trillion in 2024, a huge blow for developing nations.
UNCTAD latest data showed that the outlook for international investment this year “is negative”, a sharp course correction from January, when “modest” growth seemed possible.
UNCTAD Secretary General Rebeca Grynspan said that the reasons for this range from trade tensions and tariffs whose main effect has been a “dramatic increase in investor uncertainty”
She said that investment in renewable energy, water and sanitation fell by some 30 per cent and that agriculture saw a 19 per cent drop in investor confidence.
Ms. Grynspan said only the health sector saw an increase of 20 per cent, although that only accounts for “less than $15 billion globally”.
“Behind those numbers are very real consequences. Jobs not created,” she said. “Infrastructure not built, sustainable development delayed. What we see here is not just a downturn. It is a pattern.”
Ms. Grynspan cited “growing geopolitical tensions” in addition to rising trade barriers around the world as reasons for the fall in global investment for development.
The agency noted that in critical sectors as hi-tech industries and rare earth minerals, governments are also tightening screening measures on proposed foreign investment.
