MAINLY driven by the economic fallout from the coronavirus pandemic, global foreign direct investment (FDI) in 2020 slipped by 42 percent year-on-year to $859 billion, according to the UN’s trade and development body.
Last year’s figure was down from $1.5 trillion in 2019, more than 30 percent below the investment trough that followed the 2008-2009 global financial crisis, the UN Conference on Trade and Development said on Sunday.
The largest decline in FDI was seen in developed countries, plummeting by 69 percent to $229 billion during the same period.
The US posted a 49-percent annual decrease in FDI to $134 billion last year. The decline took place in wholesale trade, financial services and manufacturing.
Noting that investment to Europe dried up, the report said FDI flows fell by two-thirds to minus $4 billion in the continent.
Although FDI collapsed in major European economies such as the UK – FDI fell to zero – last year, overall performance masks a few regional bright spots, it underlined.
“Sweden, for example, saw flows double from $12 billion to $29 billion. FDI to Spain also rose 52 percent, thanks to several acquisitions, such as private equities from the United States Cinven, KKR and Providence acquiring 86 percent of Masmovil,” it added. (Anadolu)
