Lara Croft reports on UNCTAD's grim forecast for international investment in 2025, as trade tensions and tariff uncertainty threaten global economic stability.
Lara Croft reports on UNCTAD's grim forecast for international investment in 2025, as trade tensions and tariff uncertainty threaten global economic stability.

The World is Changing

Right gather 'round because I've just unearthed a real doozy of a report from UNCTAD – and it's not filled with gold or ancient artifacts I'm afraid. Apparently the global economy is about to hit a rough patch and it seems we're all in for a bit of a bumpy ride. They're saying international investment is going belly up in 2025. Negative darling as in going backwards faster than I can backflip out of a collapsing temple.

Tariff Terrors!

The villains this time aren't supernatural but something far more insidious: tariffs! All these pesky trade tensions have led to some serious downward revisions in the financial tea leaves. GDP capital formation even the way investors are feeling – all worse than a room full of snakes! As UNCTAD's Richard Bolwijn put it "Moderate growth expectations we might have had early in the year have now all disappeared." Sounds like someone needs a stiff drink and a good adventure.

Manufacturing Mayhem

Remember when everyone was moving their factories out of China? Well those plans are now on hold faster than you can say "supply chain diversification." Bolwijn says "Companies were continuing to look for new locations for production but now with the tariffs they are all sitting on their hands." It's like a game of economic musical chairs and the music just stopped. No wonder the M&A market is back to global financial crisis levels. I've seen less dramatic collapses in ancient civilizations!

Billions at Stake

Even if the politicians decide to play nice and clear up these tariff tantrums the damage is done. We're talking about $100 to $200 billion in projects at risk globally! That's a lot of treasure to leave buried even for me. As Bolwijn warns "Projects will be delayed which will cause a gap permanently going forward." That's almost as depressing as finding out the artifact you spent weeks searching for is a fake.

Africa's Silver Lining?

It's not all doom and gloom. Africa's actually seeing a surge in FDI up 75%! Though a big chunk of that is thanks to a single deal in Egypt. Take that away and it's still up just not as dramatically. Meanwhile China's FDI is taking a nosedive down 40% from its peak. Looks like they're learning the hard way that you can't hoard all the treasure for yourself. Sharing is caring especially when it comes to economic stability!

Sustainable Development? More like 'Unsustainable'!

And here's the real kicker: investment in sustainable development is plummeting. Energy and gas supply are down 28% and renewable energy projects are down 16%. Talk about bad timing! We need green energy more than ever and these cuts are about as welcome as finding a swarm of spiders in my backpack. Seriously folks we need to get our act together. The world can't afford to fall short on sustainability goals.


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