United Nations Conference on Trade and Development (UNCTAD) has released its flagship report titled as “World Investment Report 2020: International Production Beyond the Pandemic”. This is the 30th edition of the report. According to the report, the Global flows of foreign direct investment (FDI) will be under severe pressure this year as a result of the COVID-19 pandemic. The report stated that the Global foreign direct investment (FDI) flows will reduce up to 40% in 2020 as compared to its 2019 value of $1.54 trillion.
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About United Nations Conference on Trade and Development (UNCTAD):
UNCTAD is a permanent intergovernmental body. United Nations General Assembly established the UNCTAD in 1964. The headquarters of UNCTAD are located in Geneva, Switzerland. It is part of the United Nations Secretariat and reports to the United Nations General Assembly and the Economic and Social Council. It is also the part of the United Nations Development Group. It supports the developing countries to avail the benefits of a globalized economy more fairly and effectively. Together with other UN departments and agencies, UNCTAD measures progress by the Sustainable Development Goals, as set out in Agenda 2030. Secretary-General of UNCTAD is Mukhisa Kituyi.
About “World Investment Report 2020”:
World Investment Report 2020: International Production Beyond the Pandemic has been released by the UNCTAD. This is the 30th edition of the World Investment Report. The report monitors the global as well as regional FDI trends and also documents the national and international investment policy developments. It also analyses the impacts of the COVID-19 crisis.
Key findings of the report:
- The report forecasts Global FDI flows to decrease by up to 40% in 2020, from their 2019 value of $1.54 trillion.
- According to the report, the investment flows are expected to slowly recover starting from 2022 to be led by global value chains (GVCs).
- As per the report, Global FDI is projected to decrease by a further 5 to 10% in 2021, followed by a recovery in 2022.
- Report mentioned that among developed countries, FDI flows to Europe are expected to fall by 30 to 45%.
- Report stated that the developing economies are expected to see the biggest fall in FDI.
- The FDI flows to developing Asia is projected to fall by 30 to 45%.
- As per the report, the inflows to South Asia increased by 10 per cent to $57 billion.
- As per the report, the FDI to India increased by 20% to $51 billion in 2019, sustaining the country’s upward FDI trend.
- Among the world’s largest FDI recipients, United States stood first in 2019.
- Among the world’s largest FDI recipients, India has jumped from 12th position in 2018 to 9th position in 2019.
- Report also mentioned that India’s large market will continue to attract market-seeking investments to the country.
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