Investments create the foundation for modernizing infrastructure, boosting productivity, and expanding labor markets.

Despite their socio-economic importance, both private and public investment in developing countries has been steadily declining. Between 2008 and 2023, the volume of foreign direct investment fell from 5% to 2% of GDP. The main reasons include a deteriorating global environment—geopolitical risks, trade fragmentation, and rising borrowing costs—which in turn have increased debt burdens, constrained fiscal space, and led to the suspension of previously planned projects. The World Bank stresses the need for comprehensive structural reforms. Experts recommend improving the efficiency and transparency of public financial management, pursuing predictable monetary policy, and building reserves. They also call for deeper trade and financial integration, lowering administrative barriers for business, and strengthening contract enforcement.