The United Nations Conference on Trade and development: a sharp drop in global foreign direct investment in 2020

On the 24th local time, the United Nations Conference on Trade and Development released the “global investment trend monitoring” report, which evaluates the annual flow of foreign direct investment in 2020, including official data from 153 economies and 111 countries, accounting for 98% of the total foreign direct investment in the world. The report points out that in 2020, global foreign direct investment will drop sharply to only US $859 billion, down 42% compared with us $1.5 trillion in 2019, and 30% lower than the trough after the global financial crisis in 2009. The decline was concentrated in developed countries, with FDI inflows to developed countries down 69% to only US $229 billion, the lowest level in the past 25 years. The inflow of foreign investment to developing economies has declined by only 12%, to about US $616 billion, accounting for 72% of the world’s foreign direct investment, reaching the highest level in history. FDI inflows to the EU fell by two-thirds in 2020, from more than $370 billion to $110 billion. Foreign investment in Latin America has decreased by 37%, that in Africa by 18%, and that in Asia by only 4%, to about US $476 billion. FDI inflows to economies in transition dropped sharply to US $13 billion, or 77%, the lowest level since 2002. Zhan Xiaoning, director of the investment and enterprise division of the United Nations Conference on Trade and development, said that the global investment prospect is not optimistic. The growth of global direct investment will remain weak in 2021. It is expected that the decline of investment will bottom out in the second half of 2021 and begin to recover in 2022. The risks caused by the latest epidemic, the slow progress of vaccination programs and economic support programs, the fragile macroeconomic situation in major emerging markets, and the uncertainty of the global investment policy environment will continue to affect the global investment recovery in 2021. (CCTV reporter Zhu He)

(editor in charge: Shan Xiaobing)

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