Published on: June 2026
FOREIGN DIRECT INVESTMENT OUTLOOK 2026: A WORLDWIDE ANALYSIS
Dr RAJANALA CHANDRA SEKHAR
RISHI UBR WOMEN’S COLLEGE, HYDERABAD
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Abstract
Foreign Direct Investment (FDI) remains a critical driver of global economic growth, technology transfer, and development. In 2025, global FDI flows rose 14% to an estimated $1.6 trillion, recovering from declines in prior years, though much of the increase was attributed to conduit flows through financial centers rather than productive investments. Developed economies saw strong gains (43% increase), while developing economies experienced a slight decline. For 2026, the outlook is cautiously optimistic but highly uncertain, with potential modest growth contingent on easing financing conditions and rising M&A activity, tempered by geopolitical tensions, trade fragmentation, and policy uncertainty. This study analyzes global FDI trends, determinants, and impacts using secondary data, econometric insights, and projections.
Keywords Foreign Direct Investment, FDI Outlook, Global Economy, Economic Growth, OLI Paradigm, Geopolitical Risks, Sustainable Development
How to Cite this Paper
SEKHAR, D. R. C. (2026). Foreign Direct Investment Outlook 2026: A Worldwide Analysis. International Journal of Creative and Open Research in Engineering and Management, <i>02</i>(6). https://doi.org/10.55041/ijcope.v2i6.197
SEKHAR, Dr. "Foreign Direct Investment Outlook 2026: A Worldwide Analysis." International Journal of Creative and Open Research in Engineering and Management, vol. 02, no. 6, 2026, pp. . doi:https://doi.org/10.55041/ijcope.v2i6.197.
SEKHAR, Dr. "Foreign Direct Investment Outlook 2026: A Worldwide Analysis." International Journal of Creative and Open Research in Engineering and Management 02, no. 6 (2026). https://doi.org/https://doi.org/10.55041/ijcope.v2i6.197.
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- •Published on: Jun 16 2026
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