Decline in investment in the world | Collapsed…

Global foreign direct investment collapsed 42% in 2020, to $ 859 billion, from $ 1.5 trillion in 2019, the United Nations Conference on Trade and Development reported on Sunday (Unctad, for its acronym in English), in its 38th Global Investment Trends Monitor.

Foreign direct investment (FDI) ended 2020 more than 30 percent below the global financial crisis in 2009 and returned to the level last seen in the 1990s.

The report notes that “the decline was concentrated in developed countries, where FDI inflows fell 69 percent to about $ 229 billion. Flows to Europe have been completely depleted at -4 billion dollars, including large negative flows in several countries. sharp decline in the United States (-49%) to $ 134 billion. “

UNCTAD, based in Geneva, Switzerland, noted that “the decline in developing economies has been measured at relatively -12 percent for an estimated $ 616 billion. The share of developing economies in global FDI has reached as low as $ 616 billion. 72 percent, the highest share on record. China leads the ranking of the largest recipients of FDI. “

The decline in FDI inflows into developing regions has been uneven, with 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 recipient region, accounting for one-third of global FDI in 2020. FDI to transition economies fell 77% to $ 13 billion.

FDI in China, where the initial phase of the pandemic caused a sharp drop in capital spending, ended the year with a slight increase (+ 4%).

FDI in India increased by 13%, thanks to investments in the digital sector. In the ASEAN bloc, the engine of FDI growth over the past decade, it fell by 31%.

The halving of FDI inflows to the United States was due to the sharp decline in new investment and cross-border mergers and acquisitions. FDI in the EU fell by two thirds, with significant declines among all major recipients; except the United Kingdom which showed no fall.
UNCTAD predicts that “the trend of FDI should remain weak in 2021”.