Daily Management Review

UN expects decline in direct foreign investment across the globe


According to a report by the United Nations Conference on Trade and Development (UNCTAD), the worldwide flow of foreign direct investment (FDI) may drop in 2022 as a result of the conflict in Ukraine and the coronavirus pandemic.

Foreign direct investment reached $1.58 trillion last year, up 64% from 2020.

"However, by 2022, the global environment for international trade and cross-border investment will have changed substantially," according to the paper. In addition to the pandemic's lingering consequences, the situation in Ukraine is producing a food, energy, and financial crises in many countries throughout the world.

"Investor uncertainty might exert major negative pressure on global FDI in 2022," the report states

The United Nations Conference on Trade and Development (UNCTAD) anticipates that worldwide FDI flows will decline this year. In instance, preliminary data for the first quarter of 2022 show a 21% decrease in new projects and a 4% decrease in foreign project finance arrangements.

Furthermore, the first quarter of 2022 witnessed a record number of new investment policy measures (75), largely in response to the crisis in Ukraine, according to the research.

source: unctad.org