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Foreign Direct Investment in 2025: Global Growth with Uneven Momentum
In 2025, Foreign Direct Investment (FDI) saw a significant recovery. Global FDI flows exceeded USD 1.6 trillion, marking a substantial improvement compared with the previous year.
However, growth was uneven. While some advanced economies benefitted from a sharp rise in investment, other countries saw more moderate growth, reflecting the impact of the international economic and geopolitical environment.
Key Drivers Behind FDI Growth
The increase in foreign investment flows was mainly driven by three factors:
- the reinvestment of profits by multinational companies;
- intra-company loans, which facilitated financing of subsidiaries;
- greater financial stability across several key markets.
At the same time, some major Asian markets have shown signs of recovery after several years of slower growth, contributing to strengthening international investment.
Leading Destinations for Foreign Direct Investment
The United States remains the world’s leading destination for Foreign Direct Investment in 2025, thanks to its resilient economy and strong ability to attract international capital.
Among the major global investors, the United States, Japan and China continue to stand out, playing a central role in the origin of capital flows and in the dynamics of international investment.
Cross-Border M&A Remain Strong While Greenfield Investments Slow Down
One of the most notable trends in 2025 was the resilience of cross-border mergers and acquisitions (M&A), which maintained high transaction volumes despite on-going macroeconomic uncertainty.
In contrast, greenfield investments—that is, investments aimed at creating new production facilities or operational sites—saw a decline both in the number of initiatives announced as well as in the total value of planned investments. This slowdown was particularly evident in emerging markets.
Outlook for Foreign Direct Investment in 2026
The outlook for 2026 continues to be influenced by several key risks, including:
- persistent geopolitical tension;
- ongoing inflationary pressure;
- high volatility in energy prices.
Despite these challenges, certain sectors continue to attract substantial investment. In particular, technology, digital infrastructure and energy transition are expected to remain among the sectors offering the greatest growth opportunities.
Countries capable of ensuring regulatory stability, maintaining an investor-friendly business environment and implementing competitive economic policies are likely to attract a growing share of global FDI flows in the coming years.
Conclusion
2025 marked a resurgence in Foreign Direct Investment, driven by the confidence of multinational companies and the strengthening of certain key markets. Although the international landscape remains complex, FDI will continue to serve as one of the main indicators of global economic competitiveness and a strategic factor for countries’ economic growth throughout 2026.
