Global foreign direct investment has undergone a significant shift over the past two decades, with international investment flows remaining well below the levels reached during the pre-global-financial-crisis period.

According to World Development Indicators data, global foreign direct investment peaked at more than $3 trillion in 2007. By 2024, the figure had fallen back to around $1 trillion, roughly matching the level recorded in 2005.

The long-term movement stands in marked contrast to the performance of international remittances. During the same period, global remittance inflows increased by approximately 240 percent, highlighting the growing importance of money transferred by workers and migrants to households and economies in other countries.

The contrasting trends illustrate how different forms of cross-border financial flows have evolved. While investment decisions are influenced by economic conditions, geopolitical developments, financing costs and business expectations, remittances are closely connected to migration and household income.

For developing economies, remittances can provide an important source of external income, supporting families and contributing to domestic consumption and economic activity.

The World Development Indicators data therefore offer a broader view of changes in the global financial landscape, showing a substantial decline in foreign direct investment from its 2007 peak alongside strong long-term growth in remittance flows.