Page 13 - Policy Economic Report_Feb'25

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

The largest market for investment was mainland China, which alone accounted for $818 billion of
investment, up 20% from 2023. China’s investment growth was equivalent to two-thirds of the total global
increase in the year, with all sectors reviewed in the report showing solid growth.

The EU, US, and UK, which drove growth in 2023, saw different results in 2024. Investment was stagnant
in the US, reaching $338 billion, and down in both the EU and UK, hitting $381 billion and $65.3 billion,
respectively. China’s total investment last year was greater than the combined investment of the US, EU
and UK. Of the large markets included in the report, India and Canada also added to overall global growth,
increasing their investments by 13% and 19%, respectively.

The report highlighted that global energy transition investment would need to average $5.6 trillion each
year from 2025 to 2030, to get on track for global net zero by 2050, in line with the Paris Agreement. The
current investment levels are only 37% of what is required to get on track. The ‘investment gap’ differs by
geography and technology, with China closest to being on track, followed by Germany and the UK.

3. Foreign Direct Investment Increased to a Record $41 Trillion-IMF

According to IMF, global foreign direct investment grew again in 2023 after declining the previous year.
Inward direct investment climbed $1.75 trillion, or 4.4 percent, reaching a record $41 trillion, according
to the IMF’s latest Coordinated Direct Investment Survey, which provides detailed information on direct
investment positions between countries.

FDI rose in most regions, with Central and South Asia, Europe, and North and Central America contributing
most. Direct investment between advanced economies grew by $880 billion, or 3.6 percent, while those
from advanced economies to emerging market and developing economies rose by $538 billion, or 7.6
percent.

Figure 4: Top destination for inward FDI

Source- IMF Page | 12

February 2025