Infectious foreign direct investment (FDI) fell by 42% globally by 2020, the United Nations Conference on Trade and Development (UNCDAT) announced on Sunday, which does not predict a recovery before 2022.
Foreign investment, which totaled $ 1.5 billion (2 1.2 billion) in 2019, fell to $ 859 billion (70 706 billion) last year, down from at least 30% in 2009 during the global financial crisis.
This year, the company maintains earlier forecasts of a 5% to 10% drop in foreign investment, underlining James John, Director of Companies and UNCTAD’s Investments, at a press conference to present these data.
“Foreign direct investment is likely to recover in a ‘U’ format, which is slower than foreign trade and GDP. [produto interno bruto] Globally, the ‘V’ is expected to recover, as international investment plans are reacting somewhat too late to the crisis.
The contraction of foreign direct investment, especially in developed countries, has fallen to 69% – its worst in 25 years – and in developing economies to fall to only 12%.
This random trend has increased the share of investment in developing countries to 72% worldwide ($ 616 billion or 50 506 billion), the highest rate ever.
According to the regions, the European Union (EU) is one of the worst-hit areas, down about 70% to a total of $ 110 billion (90 90 billion).
“Of the 27 EU economies, 17 foreign investment fell, including in Germany, Austria, France and Italy, while in Sweden it doubled and in Spain it grew by 52%,” John said.
In the Spanish case, the director of companies and investments at UNCDAT said that this was due to the fact that Spanish companies were bought by a large number of foreign competitors.
An example of this is the acquisition of 86% of Operator Masma (owner of Portuguese operator Novo) by a consortium of US funds Providence, KKR and Sinven for $ 2800 million (00 2300 million).
Latin America was the growing region most affected by the health crisis in terms of investment, as FDI inflows fell by 37% to $ 101 billion (83 83 billion) by 2020, according to John.
In Brazil, foreign investment fell by 46% and in Peru by 76%. Colombia is down 49%, Argentina foreign direct investment is down 47% and Chile is down 21%.
In this region, Mexico is the country that recorded the lowest fall in foreign direct investment at 8%.
In Africa, the fall in foreign direct investment was 18% lower, while Asia was the best-resisting region, down only 4% last year, more than half of foreign investment ($ 476 billion). Or 39 391 billion).
China is also one of the few major economies to grow by 2020-23%, even increasing its investment by 4% to $ 163 billion (4 134 billion) compared to 2019.
This was due, among other factors, to policies that supported the entry of foreign capital recognized after imprisonment, which lasted less than other latitudes in this country.
In India, investment grew by 17% to US $ 57 billion ($ 46 billion), with the country benefiting from capital inflows into the digital economy.
In the United States, the index fell 49% to $ 134 billion ($ 110 billion), hit by a drop in investments by key partners such as the United Kingdom, Germany and Japan.
Investments Greenfield [primeira entrada de uma empresa num país estrangeiro]This is a good indicator of future prospects, which totaled $ 547 billion (44 449 billion) last year, down one-third (35%) compared to 2019.
John concluded this year that “investors will be cautious,” indicating that the gradual recovery of the indicator depends on factors such as vaccination campaigns, new waves of Govt-19, state crisis recovery plans and the current weak situation. Large emerging markets.