A report issued by the United Nations Conference on Trade and Development (UNCTAD) showed the collapse of global foreign direct investment in 2020, dropping by 42 percent to an estimated $859 billion from $1.5 trillion in 2019. While it ended last year, up 30 percent from its lowest level after the global financial crisis in 2009 and reached the levels of the 1990s.
According to UNCTAD, the decline was concentrated in the developed countries, as foreign direct investment inflows decreased by 69 percent to an estimated $229 billion, as flows to Europe dried up completely, and net outflows were recorded at about $4 billion, and negative flows were recorded in many of the countries, a sharp decline was recorded in the United States, reaching 49 percent, or a value of $134 billion.
FDI in emerging economies declined proportionately by 12 percent to an estimated $616 billion, while the share of emerging economies in global foreign direct investment reached 72 percent, the highest share on record. China topped the ranking of the largest recipients of foreign direct investment.
The decline in FDI flows through developing regions was uneven, reaching 37 percent in Latin America and the Caribbean, 18 percent in Africa and 4 percent in developing countries in Asia. East Asia was the largest host region, accounting for a third of global foreign direct investment in 2020. FDI to the transition economies fell by 77 percent to reach $13 billion.
Looking to the future, according to the report, the trend of foreign direct investment is expected to remain weak in 2021.
Source (Al-Arabiya.net website, Edited)
