Marred by Covid-19, global FDI flows likely to plunge 40% in 2020: UNCTAD

The pandemic is a supply, demand and policy shock for FDI. The lockdown measures are slowing down existing investment projects

Global foreign direct investment (FDI) flows are forecast to decrease by up to 40 per cent in 2020 from their 2019 value of 1.54 trillion dollars, according to UNCTAD's World Investment Report 2020.

This will bring FDI below 1 trillion dollars for the first time since 2005. In addition, FDI is projected to decrease by a further 5 to 10 per cent in 2021 and to initiate a recovery in 2022, the report says.

"The outlook is highly uncertain. Prospects depend on the duration of the health crisis and on the effectiveness of policies mitigating the pandemic's economic effects," said