EY: foreign direct investment in Europe dropped to nine-year low in 2024

According to an annual survey by consulting firm EY, new foreign direct investment projects in the EU fell to a nine-year low in 2024, dipping below even pandemic-era levels. The number of jobs created by these investments also declined by 16% year-on-year.

As EY Managing Partner Julie Teigland notes, foreign investment serves as a critical pillar of the EU economy. Teigland argues that bloc governments must take coordinated action, prioritizing sectoral development to stimulate eurozone GDP growth.

The problem stems from US President Donald Trump's unpredictable trade policies, which continue to cloud the global economic outlook with uncertainty.

An EY survey reveals that 42% of respondents expect the US administration's actions to further erode Europe's investment appeal, while 27% anticipate improvement under Trump's policies. The proportion of business representatives willing to invest in European firms has dropped from 72% to 59%.