Global investment trends and prospects

Global foreign direct investment (FDI) flows fell by 35 per cent in 2020, reaching $1 trillion, from $1.5 trillion in 2019 (figure I.1). This is the lowest level since 2005 and almost 20 per cent lower than the 2009 trough after the global financial crisis. The lockdowns around the world in response to the COVID-19 pandemic slowed down existing investment projects, and the prospects of a recession led multinational enterprises (MNEs) to re-assess new projects. The fall in FDI was significantly sharper than the fall in gross domestic product (GDP) and trade.

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