Washington: The World Bank has announced that foreign direct investment (FDI) flows to developing economies fell to $435 billion in 2023, marking their lowest level since 2005, while only $336 billion flowed to advanced economies, their lowest level since 1996.

According to Qatar News Agency, the World Bank said in a report issued Monday based on 2023 data, the latest available, that rising investment and trade barriers, macroeconomic risks, and geopolitical risks are affecting the outlook for FDI flows to developing countries, posing a threat to development efforts.

The report indicated that the global recession, both across countries, is linked to a significant decline in FDI, noting that the decline in foreign investment has left “large infrastructure gaps” in developing countries and undermined efforts to eradicate global poverty and address the urgent needs of climate change.

It said that developing economies must ease the restrictions that have accumulated in recent years, enhance trade integration, and encourage more people to participate in the formal economy.

It urged countries to work together to ensure the flow of foreign direct investment to developing economies with the greatest investment needs.