Page 12 - Policy Economic Report - June 2024
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POLICY AND ECONOMIC REPORT
OIL & GAS MARKET
• According to UNCTAD crises, protectionist policies and regional realignments are disrupting the world
economy, fragmenting trade networks, regulatory environments, and global supply chains. This
undermines the stability and predictability of global investment flows, creating both obstacles and
isolated opportunities.
• However, UNCTAD remains optimistic, suggesting the possibility of a return to modest FDI growth in
2024 due to the easing of financial conditions and concerted efforts towards investment facilitation.
Investments are growing in several global value chain-intensive manufacturing sectors like
automotive and electronics in regions and countries with easy access to major markets.
Figure 7: FDI inflows by region, bn of $ & % change
Source- UNCTAD
• With tight financing conditions in 2023, the number of international project finance deals - crucial for
funding infrastructure and public services such as power and renewable energy - fell by a quarter. This
triggered a 10% reduction in investment in sectors linked to the Sustainable Development
Goals (SDGs), most notably impacting agrifood systems, and water and sanitation.
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