Recent policy developments and key issues

The COVID-19 pandemic evoked a significant investment policy response. In 2020, the number of policy measures introduced that affected foreign investment increased by approximately 42 per cent compared with the number in 2019. The number of measures introducing regulations or restrictions, mainly adopted by developed economies, more than doubled, as several countries adopted or reinforced screening regimes for foreign investment, including in reaction to the pandemic. Conversely, the total number of measures that liberalized, promoted or facilitated investment, most of which were adopted in developing economies, remained relatively stable. Accordingly, the proportion of more restrictive or more regulatory new policy measures was the highest since 2003 (section A).

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