With the health crisis, global foreign direct investment (FDI) collapsed by 42% last year, to around $ 859 billion, from $ 1.5 trillion in 2019, according to a report from the United Nations Conference on trade and development (UNCTAD) unveiled Sunday evening.
They thus ended 2020 more than 30% below the low of 2009, just after the global financial crisis, and fell to a low not seen since the 1990s. The decline was concentrated in developed countries, where flows of investments fell 69%, to about $ 229 billion.
Flows to Europe have completely dried up.
A sharp decline was also recorded in the United States (-49%, to 134 billion dollars).
The decline in developing economies was more limited, with a decline of 12%, to an estimated $ 616 billion.
The share of developing economies in international investment thus reached 72% in 2020, the highest on record.
China, which quickly recovered from the pandemic, tops the ranking of the largest beneficiaries.
India is also doing well: investments have increased by 13%, driven by the attractiveness of the Indian digital sector.
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According to UNCTAD, global foreign direct investment is expected to remain low this year.
Strong transaction activity in the technological and pharmaceutical industries should support investment flows linked to mergers and acquisitions, according to Unctad.
Although overall investment flows in developing economies appear relatively resilient, announcements of new projects declined by 46% (-63% in Africa; -51% in Latin America and the Caribbean; and -38% in Asia) and the financing of international projects by 7% (-40% in Africa).
However, these investments are crucial to guarantee a sustainable recovery, believes UNCTAD.
