Developing economies received just $435 billion in FDI in 2023, the lowest since 2005, according to new World Bank data
Foreign direct investment (FDI) into developing economies has fallen to its lowest level since 2005, raising concerns ahead of a major global conference on development financing. According to new World Bank research, these economies received only $435 billion in FDI in 2023, with global trade and investment barriers cited as key contributors.
“It’s not a coincidence that FDI is plumbing new lows at the same time that public debt is reaching record highs,” said Indermit Gill, the World Bank’s Chief Economist.
The decline comes amid shrinking foreign aid, record public debt, and slowed global growth. Half of all FDI-related policy changes in 2025 have been restrictive—the highest share since 2010.
“With the global community gearing up for the Conference on Financing for Development, the sharp drop in FDI should sound alarm bells,” said M. Ayhan Kose, Deputy Chief Economist.
The Bank notes that easing restrictions and increasing trade openness are crucial for reversing the trend and supporting development goals.