The United Nations Conference on Trade and Development (UNCTAD) said, in a report, that foreign direct investment flows to European economies turned negative for the first time ever, dropping to minus seven billion dollars from 202 billion dollars, while flows to the United States declined 61 percent to 51 percent. Billion dollar.
He added that global foreign direct investment fell as multinational companies postponed investments to preserve liquidity.
“Global foreign direct investment flows decreased in the first half of this year by nearly half … The matter is more severe than we expected for the year as a whole,” said James Zhan, director of the investment and projects sector at the UNCTAD, in a press conference. Between 30% and 40% this year, and in a “moderate” manner in 2021, between five and ten percent.
The figures cover cross-border mergers and acquisitions, new investment projects entirely and project financing deals.
The report said that industrialized countries, which usually account for about 80% of global transactions, have been hit hard, with flows falling to $ 98 billion, a level not recorded since 1994.
Among the major recipients of foreign direct investment in 2019, flows fell strongly in Italy, the United States, Brazil, and Australia.