A new UN report revealed that global foreign direct investment flows dropped by 49% in the first half of 2020, compared to the same period of the last year, due to the novel coronavirus.
James Zhan, investment and enterprise director at the UN Conference on Trade and Development (UNCTAD), said the decline is more drastic than they expected, particularly in developed economies.
THE OUTLOOK FOR THIS YEAR REMAINS NEGATIVE
“Developing economies weathered the storm relatively better for the first half of the year. The outlook remains highly uncertain,” he said in the report published Tuesday.
Foreign direct investment flows to North America, Asia, Africa, Latin America and the Caribbean fell by 56%, 12%, 28%, 25% respectively, compared to the same period in 2019.
The report also indicates that outlook for this year remains negative with the estimation of 30-40% decline in foreign direct investment flows.