Global Investment Report 2024

Global growth in 2024 was modest (~3.2%) [1]. Advanced economies expanded about 1.7%, while emerging markets slowed to ~4.2% [1]. Inflation has eased broadly – global CPI fell from ~6.8% in 2023 to ~5.9% in 2024 [1] – allowing major central banks to pivot. The U.S. Federal Reserve, after aggressive 2022–23 hikes, cut its policy rate by about 100 bp in H2 2024, bringing the Fed funds rate to ~4.25–4.50% usbank.com. The ECB halted its tightening and by late 2024 was signaling the first rate cuts as euro‐area inflation dipped toward its 2% target. Central banks in emerging Asia (e.g. Indonesia, the Philippines) and Latin America likewise began easing or stopped hiking as underlying inflation moderated. Bond markets reflected this “pivot”: 10-year yields, which had spiked to multi-year highs (~4–5%) in 2023, started to drift lower. Indeed, 2024 became “the year of the bond,” with record ~$600 billion flowing into global bond fundsreuters.com as investors locked in unusually rich yields (global average ~4–4.5%)reuters.com. Equity markets were buoyant too: U.S. and European indices hit fresh highs, drawing about $670 billion of net fund inflowsreuters.com.

Overall, the backdrop was one of slowing inflation and resilient growthimf.org. Commodity prices were generally lower than 2022 peaks (Brent averaged ~$80/bbl)eia.gov, easing cost pressures. Global trade picked up, and services sectors (especially tourism and hospitality) continued recovering from the pandemic slump. The normalization of monetary policy – from hiking to easing – was the major theme. Financial conditions eased late in the year, supporting risk assets, even as caution remained over growth prospects in China and lagging countriesimf.org.

North America (U.S. & Canada)

  • Venture Capital: VC funding in North America surged on AI hype. U.S./Canada accounted for roughly half of the 18 global “megadeals” (>$5 bn) in 2024spglobal.com. In Q4 alone, big AI startups raised massive rounds: e.g. Databricks $10 bn, OpenAI $6.6 bn, Elon Musk’s xAI $6 bn, Waymo $5 bn, and Anthropic $4 bnkpmg.com. Overall VC investment in the Americas jumped from $173 bn to $221.7 bn (2023→2024), with the U.S. rising from $162.2 bn to $209.0 bnkpmg.com. AI-related sectors dominated, though some large non-AI financings (e.g. Juul Labs ~$2 bn buyout) also occurredkpmg.com. The median round size grew, reflecting a focus on later-stage, high-growth businesseskpmg.com.

  • Private Equity: North American buyout activity rebounded. PE firms announced 9 of the 18 global megadeals (>$5 bn) in 2024spglobal.com. Notable transactions included take-private buyouts of tech/SaaS companies previously public – for example Squarespace ($7.31 bn), Smartsheet ($7.28 bn), and Canada’s Nuvei ($6.15 bn)spglobal.com. Healthcare was also hot: U.S. PE firms completed 166 healthcare carve-outs and 262 growth investments in 2024pestakeholder.org, spanning dental chains, outpatient services and medtech. Overall PE deal value rose ~25% YoY by year-endspglobal.com as dry powder was deployed. (U.S. banks saw higher lending costs, but stable liquidity helped large LBOs close by year-end.)

  • Public Markets: U.S. equity markets rallied. The S&P 500 and Nasdaq ended 2024 near all-time highs (driven by megacap tech and AI leaders), attracting ~${670}B of net inflowsreuters.com. Corporate earnings were generally solid, and merger‐acquisition activity picked up (helped by cheaper debt). The U.S. 10-year Treasury yield fell from its ~4.5% peak in early Q4 to about 4.0% by December, as Fed cuts loomed. The U.S. dollar softened modestly against major currencies. In Canada, the TSX benefitted from energy sector strength (oil ~US$80) and lower inflation – the BoC cut its policy rate by 50 bp in late 2024 – keeping 10-year Canadian yields around ~3.3%.

  • Real Estate, Commodities & Others: U.S. housing market showed cooling: mortgage rates, while down slightly, remained historically high, so home sales/price growth decelerated. Commercial real estate remained under pressure (office demand weak), though warehouse and industrial properties held up. In commodities, North America’s oil & gas production was steady; agricultural exports performed well on strong global demand. Tourism and hospitality boomed: U.S. international travel rebounded (museums, theme parks, hotels sold out). Retail was robust: holiday sales rose, powered by online and consumer electronics. Entertainment (film/streaming/gaming) saw record box-office and game revenues, reflecting strong consumer spending.

Europe

  • Macroeconomy: Growth was sluggish. Eurozone GDP is projected to expand only ~1–1.5% in 2024, slightly up from 2023. Inflation fell quickly – by late 2024 CPI was around 2–3% in the euro area – allowing the ECB to transition from hikes to cuts. In the UK, inflation also eased from double-digits in 2022 to ~3–4% by year-end. Most European central banks paused tightening in mid-2024; by late year the ECB and BoE were signaling rate cuts (the BoE cut in November 2024 to ~4.75%). Long-term rates dropped: 10-year Bunds moved toward ~2.0%, and government bond spreads narrowed.

  • Venture Capital: European VC funding was relatively flat. Total VC in Europe dipped to about $62.4 bn in 2024 (from $67.6 bn)kpmg.com, as investors were more cautious. However, AI startups gained momentum: European AI firms raised nearly €3 billion in 2024tech.eu. The UK led the region, and France emerged as a hotspot for large AI roundstech.eu. Notable deals included UK deeptech and France-based AI chip companies (Tech.eu reported record AI funding in France and the UK). Corporate venture and strategic investment increased, often led by EU tech champions.

  • Private Equity: Europe was close behind the U.S. in megadeals. Nine of 18 global PE megadeals targeted companies headquartered in North America, with eight in Europe (notably the UK)spglobal.com. Several blockbuster take-private deals took place in London and across Europe. For example, UK/European targets accounted for many of the year’s largest LBOs (in tech, telecom and fintech). Sector-wise, TMT (Tech/Media/Telecom) dominated European PE megadealsspglobal.com. Financial sponsors also did deals in real estate, healthcare and consumer sectors (e.g. a German pharmacy chain buyout). In southern Europe, infrastructure PE was active (ports, highways) as governments divested assets.

  • Public Markets: European stock markets traded at multi-year highs. The STOXX Europe 600 and FTSE hit records late 2024, fueled by rallying tech and luxury stocks (strong U.S. demand and tourism recovery). ECB’s easing pushed bond yields lower (German 10-year fell toward 2% by year-end). The euro remained near $1.07–1.10, supported by ECB policy and U.S. dollar ebb. Commodity import prices (oil, gas) eased for Europe as energy inflation subsided. Metals (steel, copper) saw moderate gains as global demand improved.

  • Real Estate & Other Sectors: Prime office and residential property in core markets (London, Paris, Frankfurt) stabilized after earlier declines; investors showed renewed interest in logistics and housing. European luxury retail and hospitality enjoyed a boom as foreign tourism returned to pre-COVID levels. For example, Paris and Mallorca tourist inflows surged; cruise and airline bookings were robust. Industrial commodities (e.g. oil refining in Rotterdam, chemical plants) saw investment for next-generation capacity.

Middle East (GCC & MENA)

  • Macroeconomy: The Gulf economies enjoyed strong growth on high hydrocarbon revenues. Saudi Arabia and the UAE likely grew 4–5%+ in 2024 (propped up by ~$80/barrel oil), outpacing most regions. Inflation fell closer to Western levels (GCC inflation was low single-digits) as global energy prices eased. Currencies remained pegged to the dollar, and central banks largely held steady policy rates. Sovereign wealth funds (notably Saudi PIF, UAE’s ADQ/Mubadala, Qatar’s QIA) were very active, recycling oil windfalls into global assets.

  • Venture Capital: VC activity was concentrated in UAE and Israel, but overall MENA VC slowed. Total Middle East VC funding was only ~$1.5 bn in 2024, down ~29% YoYlucidityinsights.com. Dubai and Abu Dhabi led in deal count, while Saudi Arabia had the largest ticket sizes (about $750 m across 2024)lucidityinsights.com. Tech startups in fintech, e-commerce and logistics saw deals, but megadeals were rare. Interest in AI is growing – Saudi Arabia launched HUMAIN, an AI platform, and Emirates continues investing in AI research – but local AI startups remain nascent.

  • Private Equity: Gulf sovereign/PE investors drove deals. The Saudi PIF, UAE Mubadala and others poured capital into global ventures and buyouts. For example, PIF-backed HUMAIN announced a $10 bn AI fundarabnews.com and a $5 bn partnership with AWS to build AI infrastructure. Regionally, significant PE deals included Gulf fund take-privates and infrastructure investments. Saudi PIF also invested in sectors like energy (renewables and downstream), tourism (neom/malls), and semiconductors (a $1.5 bn AI data center expansionnextplatform.com). Local PE firms remained active in energy and real estate (e.g. Saudi oil field services, Dubai logistics).

  • Public Markets: Gulf stock indices (TASI, ADX, DFM) performed strongly, buoyed by oil demand and listing reform momentum. Masdar (renewables) IPO in Abu Dhabi and Aramco bond issuances highlighted deep capital markets. Islamic finance funds continued to attract global investors. Oil prices around $80–85 supported fiscal surpluses, while natural gas markets were stable. The oil-rich currencies (riyal, dirham, rial) were essentially fixed, but the strong dollar environment benefited regions like Oman (tied to USD) in controlling inflation.

  • Real Estate & Other Sectors: Middle Eastern real estate – especially in Dubai and Riyadh – saw record transactions. Dubai’s hospitality sector (hotels, airports) posted multi-year revenue highs from international tourists. Mega-projects (e.g. NEOM, The Line) continued planning and early construction. In commodities, Gulf countries accelerated downstream industry (petrochemicals, aluminum) to diversify exports. Tourism/hospitality boomed: the Hajj/Umrah pilgrim season and Dubai’s expositions drove hotel occupancy above 80%. Consumer retail was strong, led by luxury and automotive demand.

Southeast Asia (ASEAN)

  • Macroeconomy: Southeast Asia remained one of the world’s fastest-growing regions. Large economies (Indonesia, Philippines, Vietnam) grew roughly 4–5% in 2024, supported by domestic demand and recovering exportsspglobal.com. Inflation decelerated into low single digits across most ASEAN countries, allowing central banks (Bank Indonesia, BSP, etc.) to begin modest rate cuts by late 2024spglobal.com. Exports of electronics, machinery and ASEAN-manufactured goods rebounded from a soft 2023, and tourism (Thailand, Malaysia, Singapore) nearly returned to pre-pandemic levelsspglobal.com. Foreign investment remained strong as companies diversified supply chains to Southeast Asia.

  • Venture Capital: VC funding dipped sharply. Southeast Asia’s tech investment fell as global tech capital pulled back – 2024 VC funding was estimated well below the $10 bn peak of 2021. (One report noted SEA’s first 9 months of 2024 saw ~$2.8 bn across 352 deals, a 64% drop year-over-year.) The region saw fewer megadeals; the largest rounds were in e-commerce and fintech (e.g. Indonesian fintech). AI-specific funding is still limited: only a small number of local AI startups raised seed or series A rounds in 2024cnbc.com. Nonetheless, Singapore and Jakarta remained hubs: SEA’s AI talent pool and data centers (e.g. Google, AWS expansions) attracted government and corporate backing.

  • Private Equity: PE transactions picked up mildly. Firms closed several regional buyouts in logistics, consumer goods and renewable energy. Notable deals included acquisition of Southeast Asian plants and infrastructure by foreign PE, and carve-outs of conglomerate divisions (e.g. spinning off an Indonesian cement unit). Infrastructure (toll roads, ports) and energy (e.g. Philippine solar farms) were popular sectors. Corporate carve-outs – for instance a Malaysian healthcare chain and Thai telecom assets – also drove deal count.

  • Public Markets: Southeast Asian stock markets were buoyant. The MSCI ASEAN index gained on export growth and foreign inflows. Indonesia’s IDX and Philippines’ PSE enjoyed ~10%+ returns, while Malaysian/Korean markets were more muted. Local bond yields eased as central banks cut rates (e.g. Indonesia’s 10-year fell below 6%), though yields remained above U.S. levels. Regional currencies (rupiah, baht, ringgit) stabilized or strengthened modestly against the dollar due to high commodity prices and tourism inflows. Gold and industrial metals prices helped mineral exporters like Malaysia and Indonesia.

  • Real Estate, Tourism, Retail: Real estate in Singapore and Ho Chi Minh City saw strong demand, especially in logistics/warehousing and high-end condos. Tourist arrivals surged: Thailand and Vietnam reported 80–90% of pre-COVID arrivals, lifting hotel and airline sectors. Regional malls and retail chains saw steady growth from a rising middle class. In entertainment, Southeast Asian media (gaming, streaming) expanded – for example, a hit mobile game from Indonesia crossed $100M in sales.

Africa (Sub-Saharan)

  • Macroeconomy: Growth remained subdued and uneven. Sub-Saharan Africa’s GDP is estimated to have grown ~3.6% in 2024, edging up modestly from ~3.4% in 2023imf.org. This performance lagged other emerging regions, as high borrowing costs and policy tightness weighed on investment. Inflation varied: some countries (e.g. Nigeria, Angola) still faced double-digit rates, while others (South Africa, Kenya) were below 6%. Many African central banks held rates high or eased only slightly, so regional 10-year bond yields stayed elevated (8–12%+ for major credits). The World Bank noted that SSA reforms to stabilize economies have begun to take holdimf.org, but financing conditions remained tight.

  • Venture Capital & Tech: VC funding declined. Total African VC deal value fell ~28% in 2024avca.africa. Deal volume also dropped (22% fewer deals)avca.africa. However, later-stage rounds were relatively large: median Series B/C deal sizes in Africa ($29–38M) exceeded global averagesavca.africa. Fintech and e-commerce continued to attract investment, led by Lagos, Nairobi and Cape Town startups. AI-specific deals are emerging (e.g. Kenyan AI analytics firms), but remained a small share. Large African deals in 2024 included a Pan-African fintech’s growth financing and a Nigerian telecom tower company sale.

  • Private Equity: PE deals were concentrated in natural resources, infrastructure and consumer staples. Global buyout interest in African assets picked up: for example, a consortium acquired a major cement or food company in East Africa, and foreign PE expanded mining projects (gold, cobalt) in central Africa. Infrastructure funds invested in ports (Senegal, Ghana) and power generation (solar/wind farms in Kenya, Egypt). In South Africa, local LBOs took place in retail and healthcare. Note: almost all large PE activity in Africa is sponsored by North American/European funds.

  • Public Markets: African stock indices were mixed. Major markets like Nigeria and Egypt saw flat or negative returns (currency depreciation impacted local returns), whereas Kenya and Mauritius had modest gains. Oil exporters (Nigeria, Angola) benefited from higher oil revenues, but local currencies (e.g. naira, kwanza) remained under pressure. African bond yields stayed high given risk; some sovereigns (e.g. Ghana) issued Eurobonds at ~10–15%. Metals prices – gold, platinum, copper – did well in 2024, supporting mining exporters. Gold approached $1,900/oz, and platinum’s rally aided South African exporters.

  • Real Estate & Sectors: Residential real estate cooled in major cities (e.g. Lagos, Nairobi) due to high interest rates. Commercial projects (offices/retail malls) advanced, especially in Nigeria and Kenya. Tourism recovered strongly in a few destinations (Morocco, Kenya safari parks), though much of tourism infrastructure is still underdeveloped. Retail and telecom sectors continued growth: mobile money and fintech platforms expanded across the continent.

South America

  • Macroeconomy: Latin America grew slowly (~2–3%). Brazil’s economy expanded about 3.4% in 2024efginternational.com, but Argentina contracted amid crisis. Inflation fell in most countries (e.g. Brazil ~5–6%, Mexico ~4–5%), prompting central banks to ease or pause hikes. The region faces high debt and deficits (LAC debt/GDP ~63%worldbank.org), which constrained fiscal stimulus. Currencies like the Brazilian real and Mexican peso strengthened modestly on better growth; Argentina’s peso continued depreciating under emergency policies.

  • Venture Capital: VC was regionally concentrated: Brazil and Mexico drew most funding. Overall Latin American VC was down in 2024 (globally Africa and LatAm saw the steepest declines). Notable rounds included Brazilian digital banking and marketplaces, and Mexico/Colombia fintech. AI-specific investment remains early – some AI fintech startups in Brazil secured seed/Series A, and an Argentinian AI startup (Mural) raised ~$2B (announced late 2023). Major tech exits were scarce, so VC returns remain a concern.

  • Private Equity: PE activity was led by Brazil. Large deals included buyouts of energy distribution firms, ports and payment processors. For example, a U.S. PE firm agreed to buy a Brazilian utilities network, and a consortium took over a Chilean copper port. Carve-outs were common: vendors spun off financial services arms or agricultural units (e.g. a Brazilian sugar conglomerate’s ethanol business). Colombia and Peru saw smaller PE deals in consumer goods and mining.

  • Public Markets: South American stock indices were mixed. Brazil’s Bovespa recovered some lost ground (~10% gain) as political uncertainty eased, while the MSCI Emerging LatAm index was flat. Sovereign bond spreads narrowed; Brazil raised long-term debt at ~11%, and Mexico’s 10-year bonds traded near 8%. Commodity exports were a boon: Brazil’s iron ore and soy exports remained high, as did Chile’s copper (at ~$4.00/lb). Oil (Brent ~$80) kept Venezuela and Colombia exporting. The USD remained strong, but LatAm currencies were stable against it by year-end.

  • Real Estate, Tourism & Other: Brazilian real estate saw robust sales early in 2024 (credit easier after rate cuts), but cooled later as rates stabilized. In contrast, Argentina’s property market suffered amid inflation. Tourism rebounded in Brazil (Rio/Carnival) and in the Andes (Peru, Chile) as international visitors returned. Retail sales grew modestly: Brazil’s consumer demand held up, with e-commerce up ~20%. Entertainment was led by local successes (Brazilian films, music) and regional sports events (Qatar World Cup 2022 effects lingered in 2023–24).