People wearing face masks cross a street on July 28, 2021, in Tokyo, Japan.
(Yuichi Yamazaki/Getty Images)
The World Investment Report 2021 recently released by the U.N. Conference on Trade and Development (UNTAD) showed a precipitous decline in global foreign direct investment (FDI) during the COVID-19 pandemic in 2020, dropping from $1.5 trillion in 2019 to about $500 billion. Developed economies were hit hardest, with FDI falling 58% due to “corporate restructuring” and decreased “intra-firm financial flows.” Total flows to emerging markets and developing economies (EMDEs) held up relatively well, declining by only 8% as a result of a 4% increase to Asia. In contrast, investment levels in Latin America were down 45% last year, with Brazil and Peru seeing their lowest levels of FDI in 20 years. These estimates, however, are still an improvement over UNCTAD’s evaluation in January that global FDI was down by 42% in 2020. In addition, global FDI is expected to increase 10-15% in 2021. And with a further increase in 2022,...
