The United Nations Conference on Trade and Development (UNCTAD) recently released the World Investment Report 2025, and the headline is clear: global foreign direct investment (FDI) is slipping but digital sectors are holding strong. While FDI flows worldwide dropped 11% in 2024, digital economy investment is one of the few bright spots defying the downturn.
Digital transformation is not an inevitability. It’s a choice. We must choose to make it inclusive and sustainable.
said Rebeca Grynspan, UNCTAD Secretary-General.
The 2025 report, which surveys global FDI patterns and prospects, attributes the contraction to economic uncertainty, rising interest rates, and geopolitical fragmentation. Europe saw a dramatic 58% fall in investment, while the United States was among the few major economies to post gains, with a 23% increase in FDI inflows, largely driven by digital infrastructure, clean energy, and manufacturing.
But behind the national figures lies a more local question: can South Florida seize this digital momentum?
Digital Outlier in a Cooling Global Climate
UNCTAD’s report warns that the global investment environment is deteriorating further in 2025. Infrastructure, energy, and greenfield project financing are all declining. Yet FDI in the digital economy, covering semiconductors, cloud services, AI, e-commerce and fintech, continues to grow, underpinned by corporate shifts to digital first operations and government incentives around strategic tech sectors.
The digital economy has become the engine of investment resilience. But without policy action, many regions risk being left behind.
said Rebeca Grynspan, UNCTAD Secretary-General.
United States Gains, But With Concentration Risk
The U.S. saw notable gains in 2024 FDI, but the report notes a growing concentration in select states and metro areas. Most inflows are landing in tech corridors like Austin, the Bay Area, and parts of the Midwest benefitting from semiconductor supply-chain reshoring.
That leaves regional economies like South Florida at a crossroads. Though Miami-Dade and Broward have made major strides in attracting fintech and AI startups, the region still faces major infrastructure bottlenecks that could limit its ability to capture a larger share of global capital.
A Wake-Up Call for South Florida
UNCTAD’s report outlines several global dynamics that South Florida must consider if it hopes to capitalize on digital FDI trends:
First, the report highlights a staggering $1.6 trillion global investment gap in broadband and 5G infrastructure by 2030. With greenfield digital infrastructure investment falling far short of what’s needed, there’s a clear opportunity for South Florida to position itself as a destination for such capital, especially in underserved areas of Miami-Dade and Broward where connectivity remains inconsistent.
Second, while Latin America overall saw a decline in FDI, countries like Brazil and Mexico posted gains in digital sectors. As a regional gateway to Latin America, South Florida is well positioned to serve as a bridge for digital startups and investors flowing between the U.S. and Latin American markets, especially if local VCs embrace cross-border capital structures.
Third, while the U.S. remains the largest exporter of greenfield digital investment, its dominance is being challenged by rising Asian players. That trend could open the door for South Florida based funds and accelerators to seek relationships with LPs in Singapore, Taiwan, or China looking for exposure to the Western Hemisphere.
Finally, UNCTAD emphasizes that digital investment isn’t just about fiber or semiconductors. It’s also about regulation, governance, and human capital. South Florida’s ability to train cybersecurity and AI talent, streamline digital infrastructure permitting, and implement investor friendly data policies could determine whether it attracts the next generation of digital projects or watches them go elsewhere.