Global FDI flows shrink to almost half in H1-20 amid COVID-19

Global foreign direct investment (FDI) flows dived by 49 percent during the first half (H1) of 2020, when compared to 2019, according to the United Nations Conference on Trade and Development (UNCTAD).

In its report ‘Investment Trends Monitor’, UNCTAD expected that the global FDI flows would cut by up to 40 percent for the full year.

UNCTAD referred that lower FDI flows are attributed to the coronavirus (COVID-19) lockdowns which negatively affected existing investment projects across the world.

Moreover, the prospects of deep recessions have pushed multinational enterprises (MNEs) to delay new projects.

The fall was seen across major FDIs, including new greenfield investments with a 37 percent drop, cross-border mergers and acquisitions with 15%, and newly announced cross-border finance deals with 25 percent.