Investment Trends Monitor Report: UNCTAD:
According to the recent Investment Trends Monitor Report issued by the United Nations Conference on Trade and Development (UNCTAD), global Foreign Direct Investment (FDI) collapsed in 2020 by 42% to an estimated USD 859 billion from USD 1.5 trillion in 2019.
- Such a low level was last seen in the 1990s and is more than 30% below the investment decline that followed the 2008-2009 global financial crisis.
Global Trend:
India and China:
- India witnessed a 13% year-on-year rise, the highest among key nations, in FDI inflows in 2020, China’s rose by 4%.
In absolute terms, China remained way ahead, with an inflow of as much as $163 billion, while India’s stood at $57 billion.
Advanced Economies:
- The UK and Italy saw an over 100% crash each in FDI inflows, followed by Russia (96% drop), Germany (61%), Brazil (50%), the US (49%), Australia (46%) and France (39%).
Developing Economies:
- Developing economies drew as much as 72% of global FDI in 2020 – their highest share on record.
Asian nations did particularly well, attracting USD 476 billion in FDI in 2020.
Future Projection:
- The uncertainty about the Covid-19 evolution will continue to hamper global FDI inflows in 2021, threatening sustainable recovery prospects.
