Foreign direct investment has fallen to its lowest level since 2005.

According to the World Bank, the flow of foreign direct investment to developing countries has decreased due to an increase in global trade barriers.

“What we are seeing is the result of government policy. It is no coincidence that foreign direct investment is falling to new lows at the same time as record high public debt,” economists believe.

Experts note that in recent years, world governments have been focused on creating barriers to investment and trade rather than removing them.

According to 2023’s results – the latest year for which all relevant data has been collected for analysis – developing countries received only $435B in foreign direct investment, which is the lowest level since 2005. At the same time, a trend of declining investment levels is also observed in developed countries.

However, these figures do not yet account for recent developments in the US administration’s imposition of new trade barriers and the global response to these actions. Analysts advise governments to ease investment restrictions.