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August 16, 2025Open Access

The Context and Landscape of Foreign Direct Investment (FDI) in 2025

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Nominal growth in foreign direct investment occurs alongside substantive declines in conduit economies, affecting overall investment flows.
Europe faced significant reductions in foreign direct investment, while the United States attracted over 2,100 new greenfield projects in 2024.
Assessment of macroeconomic conditions and geopolitical trends indicates that investment strategies are shifting towards closer partners.
This analysis provides insights for policymakers balancing foreign capital attraction with national interests, especially for developing economies.

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Analysis reveals regional disparities in foreign direct investment, suggesting geopolitical shifts are key determinants.

Lozada et al. (2025) studied this question.

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