Latest news with #RebecaGrynspan
Free Malaysia Today
an hour ago
- Business
- Free Malaysia Today
Global investment decline may worsen due to tariffs, warns UN trade agency
UNCTAD secretary-general Rebeca Grynspan said investment that has a real impact on jobs and infrastructure is going down. (EPA Images pic) GENEVA : Global foreign direct investment (FDI) fell for the second consecutive year in 2024, with fears this year could be even worse as trade tensions rock investor confidence, the UN agency for trade and development said in a report published today. FDI transactions, which do not include several European conduit economies, declined by 11%, indicating a significant reduction in actual productive investment activity, according to the UN Conference on Trade and Development (UNCTAD). Geopolitical tensions and trade fragmentation contributed to lower investment last year as they created uncertainty, which UNCTAD secretary-general Rebeca Grynspan described as a 'poison' for investor confidence. 'We are even more worried about the picture in 2025…we already feel that investment is halted…tariffs are affecting growth,' Grynspan told Reuters, with short-term risk management being prioritised over long-term investment. UNCTAD said its outlook for international investment in 2025 was negative due to trade tensions. Early data for the first quarter of 2025 shows record low deal and project activity. When several European conduit economies – which act as intermediary hubs where investments temporarily pass through before reaching their final destinations – are included, the data showed that FDI increased by 4% to US$1.5 trillion. However, UNCTAD noted that this figure masks the reality that much of this investment is merely passing through these jurisdictions and was not productive. 'We see a very worrying tendency…Investment that has a real impact on jobs and infrastructure is going down,' she said. Developed economies suffered a sharp drop in investment, with a 58% decrease in Europe. North America, however, observed a 23% increase in FDI, led by the US, while countries in Southeast Asia reached the second-highest level of FDI on record with a 10% rise, representing US$225 billion. Though capital inflows in developing countries were broadly stable, UNCTAD observed that capital was not being injected into crucial job-creating sectors such as infrastructure, energy and technology.
Scoop
6 hours ago
- Business
- Scoop
World News In Brief: Global Investment Plunges, Hurricane Season In Haiti, Rising Cholera And Hunger In South Sudan
19 June 2025 Their latest data shows that the outlook for international investment this year 'is negative', a sharp course correction from January, when 'modest' growth seemed possible. The reasons for this range from trade tensions and tariffs whose main effect has been a 'dramatic increase in investor uncertainty', said UNCTAD Secretary-General Rebeca Grynspan. 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. Only the health sector saw an increase of nearly 20 per cent, Ms. Grynspan said, although that only accounts for 'less than $15 billion globally'. 'Very real consequences' '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 also cited 'growing geopolitical tensions' in addition to rising trade barriers around the world as reasons for the fall in global investment for development. In critical sectors as hi-tech industries and rare earth minerals, governments are also tightening screening measures on proposed foreign investment, the UN agency noted. Supplies to limit hurricane impact in Haiti critically low The Humanitarian Country Team in Haiti warned Wednesday that funding and pre-positioned contingency supplies are critically low ahead of what is forecast to be an above-average hurricane season. Haiti is highly vulnerable to extreme weather, with 96 per cent of the population at risk. Forecasts project 12 to 19 tropical storms and up to five major hurricanes this year. The alert comes as the fragile island nation grapples with a worsening humanitarian crisis. Armed gangs control much of the country, the collapse of essential services and growing displacement have left 5.7 million people food insecure, 1.3 million displaced and 230,000 living in makeshift shelters ill-equipped to withstand severe weather. Limited preparations Humanitarian actors have pre-positioned limited stocks of essential items, but they are at a record low for a hurricane season posing such high risk. For the first time, Haiti will begin the hurricane season without pre-positioned food supplies or the financial resources necessary to initiate a rapid response. Meanwhile, UN Humanitarian Office (OCHA) is coordinating missions with UN agencies and partners to assess how to safely resume aid operations in high-need areas, following their suspension on 26 May due to insecurity. 'I am deeply concerned for communities, families, and vulnerable groups who have already been affected by violence and are living in precarious conditions,' said Ulrika Richardson, Humanitarian Coordinator in Haiti, calling for immediate support. As of mid-June, the $908 million Humanitarian Response Plan for Haiti is just 8 per cent funded. Worsening cholera and hunger in South Sudan OCHA raised the alarm on Thursday over rising malnutrition and cholera cases in war-torn South Sudan. An estimated 2.3 million children under five urgently need treatment for acute malnutrition, a 10 per cent increase since last July. This crisis is unfolding amid the world's most severe cholera outbreak this year, with almost 74,000 cases and at least 1,362 deaths reported as of 16 June. The start of the rainy season and waning immunity risk a significant surge in infections. UN response The 2025 Humanitarian Needs and Response Plan for South Sudan is only 20 per cent funded. Despite limited resources and many challenges, the UN and partners have scaled up efforts, delivering vaccines and life-saving aid to contain the disease and protect the most vulnerable. 'This dire situation is a stark reminder that we need funding urgently to expand food assistance, to expand nutrition and expand health services to those who need it the most,' said UN Spokesperson Stéphane Dujarric at the daily briefing in New York.
Khaleej Times
10 hours ago
- Business
- Khaleej Times
UAE attracts $45.6 billion in FDI in 2024, ranks in world's top 10
The UAE ranked among the world's top 10 destinations for foreign direct investment (FDI) in 2024, as inflows surged by nearly 49 per cent to reach $45.6 billion (Dh167.6 billion), up from $30.68 billion the previous year, according to a United Nations report. The World Investment Report 2025, released on Thursday by the UN Conference on Trade and Development (UNCTAD), revealed that the UAE climbed from 13th place in 2023 to 10th place in the latest global ranking. The UAE accounted for a dominant 55.6 per cent of total FDI inflows into the Middle East, which received $82.08 billion in 2024 – an increase from $78.39 billion the previous year. Other major recipients in the region included Saudi Arabia ($15.73 billion), Türkiye ($10.59 billion), and Oman ($8.68 billion). 'A strong rebound of flows in the UAE helped lift sub-regional figures, even as flows to Saudi Arabia and other Gulf Cooperation Council countries declined,' the UN report stated. The UAE's outward FDI also saw moderate growth, rising by 4.8 per cent to reach $23.4 billion in 2024. Globally, FDI rose marginally by four per cent to $1.51 trillion, up from $1.45 trillion in the previous year. However, UNCTAD noted that this figure was inflated by volatile flows through conduit economies. When adjusted for these factors, global FDI declined by 11 per cent – marking the second consecutive year of decline. 'Productive FDI fell by 11 per cent in 2024, continuing a downward trend,' warned UNCTAD Secretary-General Rebeca Grynspan. 'This is not just a downturn – it's a pattern.' Despite the overall decline, the United States remained the largest global recipient of FDI and led in both greenfield project announcements and international project finance (IPF) deals. Other top destinations included Brazil, Egypt, the UAE, Mexico, India, Indonesia, and Vietnam. Greenfield investment activity was especially strong in India and the UAE, while IPF deals were concentrated in a few mature markets and large emerging economies, the report added.
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Business Standard
12 hours ago
- Business
- Business Standard
India reaches 15th spot in top FDI destinations in 2024: UNCTAD report
Foreign Direct Investment (FDI) into India remained at $28 billion in 2024 amid a 11 per cent decline in global flows, a report by the United Nations Conference on Trade and Development (UNCTAD) said on Thursday. According to the report, India climbed up a place to reach the 15th spot while retaining its position in the top five for both kinds of FDI: greenfield projects and international project finance deals. In 2023, FDI inflows into India plummeted 43 per cent in 2023 to $28 billion. China also slipped to fourth spot in 2024 from being the second-largest FDI destination last year with flows dropping to $116 billion from $163 billion. 'Too many economies are being left behind not for the lack of potential but because the system still sends capital where it's easiest, not where it is needed,' said Rebeca Grynspan , UN trade and development secretary-general. According to the Department for Promotion of Industry and Internal Trade (DPIIT) data, FDI equity inflows stood at $50 billion during the 2024-25 (FY25), up 13 per cent year-on-year (Y-o-Y). 'The net FDI flows into India, excluding repatriation, was around $29 billion in FY25, according to RBI data. UNCTAD is using the same methodology used by the RBI, while referring to net FDI inflows to India, but it does on a calendar year basis,' said Biswajit Dhar, distinguished professor, Council for Social Development. UNCTAD reports international investment trends based on FDI statistics– stocks and flows, inward and outward as well as cross-border mergers and acquisitions, greenfield projects, and International project-finance deals. The data on the three types of projects are treated separately. Noting the expansion of operations by major technology firms -- in both developed and emerging markets-- the report highlighted Microsoft's $3 billion investment to enhance its Cloud and AI infrastructure in India. UNCTAD also said that while project numbers increased in most regions, only a few countries saw a significant rise in the value of new project announcements. 'India stood out with projected capital expenditures up by more than a quarter to $110 billion, almost a third of the total in Asia,' the report said. Developed economies received 53 per cent of the total international private equity investment. In comparison, Asia attracted 46 per cent, with India emerging as the main recipient, followed by China. According to the report, India was also the main destination for Sovereign Wealth Funds in terms of value (24 per cent), which contribute 5 per cent of the total investment in data centres across developing economies. India, along with Brazil and Chile, hosts more than 30 per cent of international projects in developing economies, doubling their pre-2018 share, driven by strong renewable energy programmes. The report also highlighted Walt Disney's partial exit from India operations through a $3 billion merger of Star India with Viacom 18 Media, creating a joint venture majority owned by Indian firms. Several pharmaceutical operations in India owned by international investors were also sold to local firms, the report said, stressing the sharp decline in cross border mergers and acquisition activity in developing Asia.
CTV News
13 hours ago
- Business
- CTV News
Global investment decline may worsen due to tariffs, UN trade agency warns
GENEVA -- Global foreign direct investment fell for the second consecutive year in 2024, with fears this year could be even worse as trade tensions rock investor confidence, the United Nations agency for trade and development said in a report published on Thursday. Foreign Direct Investment transactions, which do not include several European conduit economies, declined by 11%, indicating a significant reduction in actual productive investment activity, according to UNCTAD. Geopolitical tensions and trade fragmentation contributed to lower investment last year as they created uncertainty, which UNCTAD Secretary-General Rebeca Grynspan described as a 'poison' for investor confidence. 'We are even more worried about the picture in already feel that investment is are affecting growth,' Grynspan told Reuters, with short-term risk management being prioritized over long-term investment. UNCTAD said its outlook for international investment in 2025 was negative due to trade tensions. Early data for the first quarter of 2025 shows record low deal and project activity. When several European conduit economies - which act as intermediary hubs where investments temporarily pass through before reaching their final destinations - are included, the data showed that FDI increased by 4% to US$1.5 trillion. However, UNCTAD noted that this figure masks the reality that much of this investment is merely passing through these jurisdictions and was not productive. 'We see a very worrying that has a real impact on jobs and infrastructure is going down,' she said. Developed economies suffered a sharp drop in investment, with a 58% decrease in Europe. North America, however, observed a 23% increase in FDI, led by the U.S., while countries in Southeast Asia reached the second-highest level of FDI on record with a 10% rise, representing $225 billion. Though capital inflows in developing countries were broadly stable, UNCTAD observed that capital was not being injected into crucial job-creating sectors such as infrastructure, energy and technology. Reporting by Olivia Le Poidevin, editing by Ed Osmond, Reuters
