Global direct investments decreased 42 percent in 2020

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The United Nations Conference on Trade and Development (UNCTAD) released the Global Investment Trends 2020 Report.

In the report, global foreign direct investment, which was recorded at $ 1.5 trillion in 2019, is estimated to decline 42 percent last year to $ 859 billion.

It is notable that the investments in question stayed below $ 1 trillion for the first time since 2005, while the report said: “Such a low level of investment was last seen in the 1990s. Over 30.” It was evaluated.

Recalling in the report that it was previously estimated that these investments would decrease between 5 and 10 percent in 2021, it is expected that foreign direct investments will remain weak due to the uncertainty about the course of the epidemic of the new type of coronavirus ( covid-19), despite predictions that the world economy will recover in 2021 were expressed.

In the report, which draws attention to the fact that the decline in the flow of foreign direct investment is mainly concentrated in developed countries, it was noted that foreign direct investment in developed countries decreased by 69 percent last year to $ 229 billion.

According to the report, the flow of foreign direct investment into North America decreased by 46 percent to $ 166 billion, while foreign direct investment in the United States decreased by 49 percent to $ 134 billion. The decline in foreign direct investment in the US was driven by declining investments in the wholesale trade, financial services, and manufacturing sectors.

In the report, which noted that investments in Europe also declined, it was noted that the flow of foreign direct investment in the region decreased from 2 to 4 billion dollars.

In the report, it was noted that foreign direct investment in England fell to zero.

In the UNCTAD report, it was noted that foreign direct investment in developing economies declined 12 percent to $ 616 billion last year, yet the share of developing countries in global foreign direct investment increased to 72 percent, breaking a record.

In the report, which indicated that developing countries in Asia attracted an estimated $ 476 billion of foreign direct investment in 2020, investments in China were reported to have increased by 4 percent to $ 163 billion.

Turkey and India attract investment in the digital sector in record numbers
In the report, it was stated that in India, another major developing economy, investment-backed direct investments in the digital sector grew by 13 percent in 2020.

The report also emphasized the e-commerce platform of India and Turkey, a record number in the digital sector, which includes data processing and digital payment services that attract investment.


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