Brazil 5th most important destination foreign investment
UNCTAD
eyesonbrasil
Amsterdam, August 5th 2026 — The World Investment Report 2026, released on Tuesday (7) by the UN Trade and Development organization (UNCTAD), shows that global foreign direct investment (FDI) grew 6% in 2025, reaching $1.6 trillion after two years of decline.
Brazil was the standout performer in Latin America: FDI flows increased from $63 billion to $77 billion in 2025, placing the country among the five largest foreign investment destinations in the world.
Despite the recovery, UNCTAD warns of the concentration and inequality of global investments: capital flows to industrialized economies increased by 11%, while developing economies recorded growth of only 2%
Global foreign direct investment (FDI) grew 6%, reaching $1.6 trillion in 2025, ending two years of decline. Brazil was the standout performer in Latin America, recording an increase in flows from $63 billion to $77 billion, and now ranks among the five largest foreign investment destinations in the world. Despite this, the global investment recovery remains limited, fragile and unequal, according to the World Investment Report 2026, produced by UN Trade and Development (UNCTAD).
Capital flows to developed economies increased by 11%, while developing economies recorded growth of only 2%, reaching $901 billion. The figures point to a recovery that is not translating uniformly into development opportunities. The question is not only how much capital is circulating, but where it is going, what is being built with it, and whether that investment is expanding productive capacity, creating jobs, strengthening skills and supporting technology transfer.
FDI remains an important source of external financing for developing economies, but its impact depends on its ability to generate productive capacity, jobs, professional skills and technology transfer.
Fragile and concentrated recovery
The world’s 20 largest recipient economies attracted more than 80% of global FDI in 2025, underscoring a trend running throughout the report: investment is becoming more concentrated across countries, sectors and projects.
The recovery should be interpreted with caution: overall FDI figures do not always translate into new infrastructure, jobs or technology transfer. Developing economies received more than half of global FDI in 2025, but growth was modest and uneven across regions.
Developing Asia remained the largest recipient region, attracting $644 billion, while Latin America and the Caribbean recorded a 14% increase to $188 billion, and Africa received around $70 billion — still a third above the average recorded between 2010 and 2024, despite a decline from the exceptional level reached in 2024.
The least developed countries saw inflows rise by 21% to $43 billion, but still accounted for only 2.7% of global FDI, with flows concentrated in a small number of economies, most of them rich in natural resources.
This concentration is particularly visible in sectors linked to technology, energy and industrial policy. Strategic sectors such as AI infrastructure, semiconductors, critical minerals, and technologies and services oriented toward the energy transition accounted for 44% of the global value of new projects in 2025, up from 16% in 2020.
Low-income and lower-middle-income economies attracted only around 10% of investment in strategic sectors between 2020 and 2025, compared with more than 20% in other sectors.
Governments are also playing a more active role in shaping investment flows. In 2025, countries adopted a record 229 investment policy measures. While most remained favorable to investors, many were designed to attract investment into strategic sectors, strengthen national economic priorities, or respond to concerns related to economic security.
Turning investment into development gains
For developing economies, the new investment landscape brings both opportunities and risks. However, many risk being left behind as investment becomes more capital- and technology-intensive and is increasingly shaped by supportive policies that many developing economies cannot match.
UNCTAD states that developing economies need more than just investment promotion to compete in this environment.
They need greater investment facilitation, reliable infrastructure, workforce skills development, supplier development and regional markets that make projects more viable. International cooperation will also be needed to ensure that investment partnerships support both investor resilience and the development priorities of host economies.
More capital, fewer projects: investment in Latin America
Latin America and the Caribbean attracted more foreign investment in 2025 than the previous year, despite global economic uncertainty. According to UNCTAD’s World Investment Report 2026, FDI flows to the region, excluding Caribbean offshore financial centers, increased by 14% to $188 billion
This represented about one fifth of all FDI flows destined for developing economies. The increase was driven largely by South America, particularly Brazil, while investments linked to commodities and sectors supporting the energy transition continued to attract investor interest.
UNCTAD: Brazil is the fifth most important destination for foreign investment in the world
9 July 2026
The World Investment Report 2026, released on Tuesday (7) by the UN Trade and Development organization (UNCTAD), shows that global foreign direct investment (FDI) grew 6% in 2025, reaching $1.6 trillion after two years of decline.
Brazil was the standout performer in Latin America: FDI flows increased from $63 billion to $77 billion in 2025, placing the country among the five largest foreign investment destinations in the world.
Despite the recovery, UNCTAD warns of the concentration and inequality of global investments: capital flows to industrialized economies increased by 11%, while developing economies recorded growth of only 2%.
Caption: Latin America and the Caribbean attracted more foreign investment in 2025 than the previous year, despite global economic uncertainty, according to UNCTAD’s World Investment Report 2026. Brazil and Mexico together accounted for about two thirds of total regional inflows. Pictured: the Port of Santos, SP.
Global foreign direct investment (FDI) grew 6%, reaching $1.6 trillion in 2025, ending two years of decline. Brazil was the standout performer in Latin America, recording an increase in flows from $63 billion to $77 billion, and now ranks among the five largest foreign investment destinations in the world. Despite this, the global investment recovery remains limited, fragile and unequal, according to the World Investment Report 2026, produced by UN Trade and Development (UNCTAD).
Capital flows to developed economies increased by 11%, while developing economies recorded growth of only 2%, reaching $901 billion. The figures point to a recovery that is not translating uniformly into development opportunities. The question is not only how much capital is circulating, but where it is going, what is being built with it, and whether that investment is expanding productive capacity, creating jobs, strengthening skills and supporting technology transfer.
FDI remains an important source of external financing for developing economies, but its impact depends on its ability to generate productive capacity, jobs, professional skills and technology transfer.
Fragile and concentrated recovery
The world’s 20 largest recipient economies attracted more than 80% of global FDI in 2025, underscoring a trend running throughout the report: investment is becoming more concentrated across countries, sectors and projects.
The recovery should be interpreted with caution: overall FDI figures do not always translate into new infrastructure, jobs or technology transfer. Developing economies received more than half of global FDI in 2025, but growth was modest and uneven across regions.
Developing Asia remained the largest recipient region, attracting $644 billion, while Latin America and the Caribbean recorded a 14% increase to $188 billion, and Africa received around $70 billion — still a third above the average recorded between 2010 and 2024, despite a decline from the exceptional level reached in 2024.
The least developed countries saw inflows rise by 21% to $43 billion, but still accounted for only 2.7% of global FDI, with flows concentrated in a small number of economies, most of them rich in natural resources.
This concentration is particularly visible in sectors linked to technology, energy and industrial policy. Strategic sectors such as AI infrastructure, semiconductors, critical minerals, and technologies and services oriented toward the energy transition accounted for 44% of the global value of new projects in 2025, up from 16% in 2020.
Low-income and lower-middle-income economies attracted only around 10% of investment in strategic sectors between 2020 and 2025, compared with more than 20% in other sectors.
Governments are also playing a more active role in shaping investment flows. In 2025, countries adopted a record 229 investment policy measures. While most remained favorable to investors, many were designed to attract investment into strategic sectors, strengthen national economic priorities, or respond to concerns related to economic security.
Turning investment into development gains
For developing economies, the new investment landscape brings both opportunities and risks. However, many risk being left behind as investment becomes more capital- and technology-intensive and is increasingly shaped by supportive policies that many developing economies cannot match.
UNCTAD states that developing economies need more than just investment promotion to compete in this environment.
They need greater investment facilitation, reliable infrastructure, workforce skills development, supplier development and regional markets that make projects more viable. International cooperation will also be needed to ensure that investment partnerships support both investor resilience and the development priorities of host economies.
More capital, fewer projects: investment in Latin America
Latin America and the Caribbean attracted more foreign investment in 2025 than the previous year, despite global economic uncertainty. According to UNCTAD’s World Investment Report 2026, FDI flows to the region, excluding Caribbean offshore financial centers, increased by 14% to $188 billion.
This represented about one fifth of all FDI flows destined for developing economies. The increase was driven largely by South America, particularly Brazil, while investments linked to commodities and sectors supporting the energy transition continued to attract investor interest.
The ten largest recipient economies accounted for 95% of all FDI inflows to Latin America and the Caribbean in 2025. Brazil and Mexico together accounted for about two thirds of total regional inflows, demonstrating how much regional trends were shaped by a few large economies and a limited number of large projects.
Brazil was the biggest contributor to regional growth, with flows rising from $63 billion to $77 billion, placing it among the five largest foreign investment destinations in the world.
Mexico also continued to be one of the region’s leading destinations, with flows rising from around $38 billion to $41 billion, supported by its role in regional production networks and continued investment in services and manufacturing.
The largest inflows were linked to large markets, commodities, energy transition-related sectors and economies integrated into major trade and production networks. However, these factors did not translate into a greater number of new projects in the region.
The figures highlight a persistent challenge: rising inflows do not automatically translate into widespread gains across countries or sectors.
For development purposes, the concern is not only whether capital is entering the region, but whether it is creating new productive capacity, diversifying economies and supporting higher value-added activities. Much of the increase was concentrated in a small group of countries and transactions, while indicators of future productive investment weakened.
The report points to the need for policies that turn investor interest into financially viable productive projects. For Latin America and the Caribbean, this means strengthening investment facilitation and after-care, improving logistics and energy infrastructure, supporting supplier development and using regional integration to connect smaller economies to larger markets and value chains. Countries rich in minerals or with potential for renewable energy also need strategies that incentivize local value addition, rather than relying solely on commodity-linked inflows.
Outlook for 2026
The outlook for 2026 remains challenging. Uncertainty over trade policy, geopolitical tensions, conflicts, high financing costs and economic fragmentation continue to weigh on investment decisions. At the same time, competition for projects linked to strategic sectors is expected to intensify as governments seek to secure future sources of growth and technological advantage.
The report’s findings will help guide discussions at UNCTAD’s World Investment Forum 2026, to be held in Doha, Qatar, from 25 to 27 October, where governments, investors and development partners will discuss how to turn a more selective investment landscape into broader development gains.
The central question is no longer simply how much investment is crossing borders. It is where that investment is going, what it is building, and who will benefit from it.
The report points to the need for policies that turn investor interest into financially viable productive projects. For Latin America and the Caribbean, this means strengthening investment facilitation and after-care, improving logistics and energy infrastructure, supporting supplier development and using regional integration to connect smaller economies to larger markets and value chains. Countries rich in minerals or with potential for renewable energy also need strategies that incentivize local value addition, rather than relying solely on commodity-linked inflows.
Outlook for 2026
The outlook for 2026 remains challenging. Uncertainty over trade policy, geopolitical tensions, conflicts, high financing costs and economic fragmentation continue to weigh on investment decisions. At the same time, competition for projects linked to strategic sectors is expected to intensify as governments seek to secure future sources of growth and technological advantage.
The report’s findings will help guide discussions at UNCTAD’s World Investment Forum 2026, to be held in Doha, Qatar, from 25 to 27 October, where governments, investors and development partners will discuss how to turn a more selective investment landscape into broader development gains.
The central question is no longer simply how much investment is crossing borders. It is where that investment is going, what it is building, and who will benefit from it.
