A dose of grimness from the UNCTAD World Investment Report 2020. And, of course, covid-19 is squarely in the frame.
The report forecasts a ‘dramatic fall’ in FDI, thanks to covid-19. We’re looking at a fall of up to 40% in 2020 (from $1.54 trillion in 2019). We shouldn’t expect to see any recovery before 2022. In fact, 2021 is expected to bring a further decrease of between five to 10 per cent.
Not that covid-19 is alone to blame. The report tells us that this year’s dismal figures follow years of negative or stagnant growth in FDI flows.
These are global projections, but developing countries will definitely face the brunt of the decline in FDI. The Report forecasts that, for 2020, FDI flows to Africa will fall by around 25 to 40 per cent, following on from a 10% decline (to $45 billion) in 2019.
It’s not all doom and gloom, though. The Report contains prescriptions for the investment malady, particularly as concerns achieving the sustainable development goals.
The Report can be accessed here.