EU capital flows : latest developments from a global perspective (2024) : seeking stability in an adverse environment : executive summary

The European Union's economic resilience continues to be tested by a volatile global The European Union's economic resilience continues to be tested by a volatile global environment. While inflationary pressures have eased and monetary policies have begun to stabilise, interest rates remain significantly higher than pre-pandemic levels. This has created both opportunities and challenges for growth and labour markets, with the EU demonstrating notable resilience. However, escalating conflicts, rising trade tensions, and a surge in protectionist policies have introduced substantial uncertainty. These geopolitical and economic shifts threaten global stability, hinder growth prospects, and disrupt capital flows. Amid this turbulence, the need for a stronger and more integrated single market has become increasingly urgent, providing the foundation for the EU's sustained economic integration and competitiveness. This study examines the key trends and dynamics of global and EU capital movements with a focus on recent years through mid-2024. It highlights the shifts in foreign direct investment (FDI), portfolio flows, and broader financial integration within and beyond the EU, alongside their implications for global economic stability.