Global investment recovers in 2025, but remains fragile, uneven: UN Report

Global foreign direct investment (FDI) rebounded 6 percent year on year to 1.6 trillion U.S. dollars in 2025 after two consecutive years of decline, though the recovery remained narrow, fragile and uneven, the United Nations Trade and Development (UNCTAD) said on Tuesday.

"The World Investment Report 2026: International Investment in a Turbulent Era" released by UNCTAD showed that FDI inflows to developed economies grew by 11 percent in 2025, while developing economies recorded only 2 percent growth.

The world's top 20 host economies attracted more than 80 percent of global FDI, underscoring a trend of increasing concentration, it said.

This trend was particularly evident in industries linked to technology, energy and industrial policy. Strategic sectors, including artificial intelligence (AI) infrastructure, semiconductors, critical minerals, and energy-transition technologies and services, accounted for 44 percent of global greenfield project values in 2025, up from just 16 percent in 2020, the report noted.

While global FDI returned to growth, UNCTAD said the headline figures tell only part of the story, stressing that the quality and development impact of investment matter more than the overall volume.

"The central question, then, is not how much investment crosses borders. The question is where it goes, what it builds and who it benefits. A higher FDI number is welcome, but it doesn't automatically mean stronger development impacts," said Pedro Manuel Moreno, acting secretary-general of the UNCTAD, at a press briefing in Geneva, Switzerland.

Developing economies received more than half of global FDI in 2025, but growth was "modest and uneven" across regions, the report said. According to UNCTAD, China maintained its position as a major player in two-way investment.

The UN trade body also noted that China's inward FDI is shifting from scale-driven expansion towards structural upgrading and quality improvement. The composition of FDI inflows in the country continues to move towards advanced manufacturing, scientific and technological innovation, and modern services.

The report warned that the global investment recovery has not translated evenly into development opportunities. It called for scrutiny of whether investment is expanding productive capacity, creating jobs, upgrading skills and facilitating technology transfer.

Looking ahead, UNCTAD projected that the global investment outlook for 2026 remains "difficult." It said trade policy uncertainty, geopolitical tensions, conflicts, high financing costs and economic fragmentation continue to weigh on investment decisions.

UNCTAD also noted that developing economies need more than investment promotion to compete. Measures such as integrating into global value chains, improving trade facilitation and strengthening international cooperation are also essential.

Moreno said to meeting those challenges will require countries to focus not only on attracting more investment but also on ensuring it contributes to sustainable development.

"This is not simply about attracting more investment. It is about attracting investment that supports development, resilience, and domestic value creation. For developing countries, international cooperation, investment partnerships, and risk sharing mechanisms can help create conditions that individual countries cannot build alone. That role is to help countries understand these changes and turn investment trends into development choices," Moreno said.

Global investment recovers in 2025, but remains fragile, uneven: UN Report

Minyag Choekyi Gyaltsan, the ninth reincarnation of Minyag Shadrong Tulku and a renowned ancient architecture expert, has traced the history of the Potala Palace, a World Heritage site in southwest China's Xizang Autonomous Region.

Perched atop Mount Marpori (meaning "red hill" in Tibetan) in central Lhasa, capital of Xizang, the Potala Palace traces its origins back to the 7th century, during the reign of Tibetan King Songtsen Gampo. It was later expanded in the 17th century by the fifth Dalai Lama.

Even today, traces of history from more than 1,300 years ago can still be seen in its overall layout, according to Minyag Choekyi Gyaltsan.

"What did the Potala Palace look like during Songtsen Gampo's reign? This is what I have learned from my research. From historical records and murals at the Potala Palace, we know its core was formed of watchtower-type buildings. They included Songtsen Gampo's own watchtower and one for his consort. However, we can't confirm which consort. The two watchtowers were linked by an iron chain bridge, a detail recorded in historical texts. This is also supported by the murals," he said.

"In the 17th century, at the time of the 5th Dalai Lama, the Potala Palace was renovated. Desi Sangye Gyatso recorded, in The Solely Venerable Catalogue of the Stupa World, that, of the Songtsen Gampo-era Potala Palace, only a few wall foundations and relic sites remained. This is supported by historical texts. These sites still retain their original names," he said.

"Look at the Potala Palace as a whole. To the east is the East Great Fort (Sharchen Jok). To the west, near Phuntso Donlam and below the Monk Officials' School, there's a relatively tall structure called the Victory Fort (Yugyel Jok). Going further west, after passing the White and Red palaces, you will see a small structure called the Denma Fort (Denma Jok). It's only visible from the Potala Palace's north side. Between the Denma Fort and the Red Palace there's a small yellow building, next to which is the King's Fort (Gyelpo Jok)," he said.

"In order, from east to west, you have the East Great Fort, Victory Fort, Denma Fort and King's Fort. They are all still known by their ancient names. Of these four forts, the King's Fort and Denma Fort are special, as they stand right next to each other, just as is recorded in historical texts. An iron-chain bridge connects the king's fortress and the princess's fortress. Of these structures, the East Great Fort was used by officials and the Victory Fort below it, by military officers. Hence the name, Victory. Beyond the military officers' fort were the king's and his consort's forts. Below them were the Shoul city walls, the gates and other fortresses. These structures existed back then and are still clearly visible today. In terms of architectural style, the forts and fortresses were almost the same. More slender structures like these were called forts," he said.

Hailing the still evident historical traces 1,300 years later, Minyag Choekyi Gyaltsan called for more respect to this priceless cultural treasure.

"That's a brief introduction to the Potala Palace during Songtsen Gampo's reign. Thirteen hundred years later, the historical traces are still evident. This in itself is deeply significant. For that reason, we should value these precious relics even more. It's extremely important that we respect them," he said.

Ancient architecture expert traces history of Potala Palace, calls for respect