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Global FDI Falls as Remittances Rise, With India Leading
Foreign companies are investing less money around the world than they did in the past.
Global FDI fell to about $1 trillion in 2024 after reaching more than $3 trillion in 2007.
At the same time, money sent home by workers living abroad has grown greatly.
These payments are called remittances.
They help families pay for food, homes, education, and healthcare.
India received the most remittances, totaling $138 billion in 2024.
Poorer countries received more investment than before, but still captured only a small share of global FDI.
Remittances help families but do not build factories and infrastructure in the same way as FDI.
The World Bank says countries need both foreign investment and the financial support of people working abroad.
Global FDI fell from more than $3 trillion in 2007 to roughly $1 trillion in 2024.
Global remittance inflows rose 240% between 2005 and 2024, reaching households directly.
India's remittance inflows increased from $22 billion in 2005 to $138 billion in 2024.
FDI in IDA-eligible countries reached $66.3 billion in 2024, but represented only 4.22% of global inflows.
The World Bank says remittances cannot replace FDI and recommends attracting productive investment while using diaspora networks.
- Who
- The World Bank, developing economies, migrant workers, and major recipient countries including India.
- What
- Global FDI declined sharply while remittances increased, with India becoming both the largest recipient and a growing source of remittance outflows.
- Where
- The trend is global, affecting developing economies, IDA-eligible countries, and major economies including India, China, the United States, and the United Arab Emirates.
- When
- The comparison covers mainly 2005 to 2024; global FDI peaked in 2007 and China's FDI inflows peaked in 2021.
- Why
- The World Bank links rising remittances to expanding international labor mobility, while weaker FDI reflects the growing difficulty of attracting foreign capital.
Key facts
- Global FDI peak
- More than $3 trillion in 2007
- Global FDI in 2024
- Roughly $1 trillion
- Global remittance growth
- Inflows rose 240% and outflows rose 227% from 2005 to 2024
- India remittance inflows
- Increased from $22 billion in 2005 to $138 billion in 2024
- IDA-country FDI
- Rose from $1.9 billion in 1990 to $66.3 billion in 2024
- IDA share of global FDI
- 4.22% in 2024
- India remittance outflows
- Increased from $1.3 billion in 2005 to $12 billion in 2024
Sources
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