Global foreign direct investment (FDI) flows are expected to bottom out and recover some lost ground this year, according to the 2021 edition of UNCTAD’s World Investment Report.
FDI flows plunged globally in 2020. Lockdowns caused by the COVID-19 pandemic around the world slowed down existing investment projects, and the prospects of a recession led multinational enterprises to reassess new projects.
The fall was heavily skewed towards developed economies although FDI in developing economies was relatively resilient.
COVID-19 has also caused a collapse in investment flows to sectors relevant to the UN Sustainable Development Goals in developing countries.