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Pandemic plunges foreign investment

2020-06-17T21:33:26.678Z


The United Nations forecasts a 40% drop in these capital flows in 2020 and no rebound before 2022.It is a collateral economic damage from the pandemic. The plunge in growth, the crisis of confidence and the revival of economic nationalism led to a fall in foreign direct investment (FDI). Highlighting the triple “ demand, supply and policy shock ”, the United Nations anticipates a 40% drop this year which will continue in 2021 (-5 to -10%) before a rebound expected in 2022 thanks to a better ec...


It is a collateral economic damage from the pandemic. The plunge in growth, the crisis of confidence and the revival of economic nationalism led to a fall in foreign direct investment (FDI). Highlighting the triple “ demand, supply and policy shock ”, the United Nations anticipates a 40% drop this year which will continue in 2021 (-5 to -10%) before a rebound expected in 2022 thanks to a better economic situation. According to projections by the Conference for Trade and Development (UNCTAD), the amount of FDI is expected to fall below the 1000 billion mark, a first since 2005.

Read also: The French economy among the most affected by coronavirus

" The prospects are very uncertain , nuances the secretary general, Mukhisa Kituyi. It will depend on the health crisis and the effectiveness of policies. ”In addition, there are geopolitical and financial risks and trade tensions. Faced with the crisis, specifies Alexandre Dabbou of the investment and companies division, the States have both taken " measures

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Source: lefigaro

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