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A United Nations trade agency reported that China overtook the United States as the largest recipient of foreign direct investment (FDI) in 2020.
The United Nations Conference on Trade and Development (UNCTAD) concluded that China had become the largest recipient of FDI compared to the United States last year, with flows increasing by 4% to reach 163 billion of dollars, Bloomberg News reported.
Most countries have seen declines due to the coronavirus pandemic, including the United States, which saw its flow drop 49% to $ 134 billion, according to UNCTAD’s Investment Trends Monitor. The decline in the United States was seen in wholesale trade, financial services and manufacturing.
China’s return to positive GDP growth and a targeted investment facilitation program have contributed to the country’s FDI levels, the agency noted. in a version.
Globally, flows fell 42% to $ 859 billion due to the coronavirus pandemic, from $ 1.5 trillion in 2019. Global foreign direct investment hit its lowest level in years 1990, including 30% less than investments after the 2008-2009 financial crisis.
North American flows fell 46% to $ 166 billion, but Europe saw declines of around 66% to less than $ 4 billion.
The declines were found to be concentrated in developed countries, where flows fell 69 percent. Meanwhile, developing countries accounted for 72 percent of global FDI, the highest percentage recorded.
FDI is expected to remain volatile in 2021 as the coronavirus pandemic continues to impact the world.
“The effects of the pandemic on investment will persist,” James Zhan, director of the investment division of UNCTAD, said in the statement. “Investors are likely to remain cautious in committing capital to new productive assets abroad.”
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