Global foreign direct investments decrease by 49% in the first half of the year 2020.
The United Nations Conference on Trade and Development (UNCTAD), reported that the Global foreign direct investments flow decreased 49% in the first half of this year, compared to the same period last year, as a result of the economic effects of the new type of Coronavirus outbreak.
In the statement made by UNCTAD, the current quarantine measures against the COVID 19 outbreak, slowed down their projects and the expectation of deep recession caused multinational companies to re-evaluate their new projects.
Speaking in the statement, UNCTAD Investment and Business Director James Zhan pointed out that the decline in foreign direct investment is more severe than expected, especially in developed economies.
It was pointed out that the Global foreign direct investments flow in North America decreased by 56% to $68 billion in the same period and it was stated that the foreign direct investment flow in developing economies decreased by 16%, which was less than expected, due to investments in China.
It was noted that the flow of foreign direct investment fell 25% in Latin America and the Caribbean, 28% in Africa and 12% in Asia, during the same period.
It was stated that the Global foreign direct investments flow decreased by 49% in the first half of this year, compared to the same period last year, as a result of the economic effects of the epidemic and that the biggest decrease occurred in developed countries.
It was stated that the flow of foreign direct investment in developed economies decreased by 75% in the first 6 months of this year, compared to the same period of the previous year and decreased to 98 billion dollars.
It was also stated that the rate of decline of Global foreign direct investments in developed economies, is likely to follow a flat course, with the effect of the recovery in some investment activities in the third quarter of the year 2020.