Investment Flows

Investment flows plunged globally by 35% in 2020 due to the COVID-19 crisis. The fall was heavily skewed towards developed economies.

COVID-19 recovery investment plans largely focus on infrastructure sectors that are key to building productive capacities.

The continent's commodity-dependent countries have been affected more severely than non-resource-based economies.

Prospects for 2021 are positive, with expected growth of up to 20%, mainly due to strong cross-border mergers and acquisitions.

Foreign direct investment remains stable in least developed countries, but contracts severely in landlocked developing nations and small island developing states.

Despite recovery efforts, a return to pre-pandemic levels of inward foreign direct investment is unlikely in the coming years.

Developing Asia is the only region that recorded growth in foreign investment in 2020, accounting for more than half of global inward and outward flows.

Global flows of foreign direct investment (FDI) fell 13% in 2016 to an estimated $1.52 trillion as global economic growth remained weak and world trade volumes posted anemic gains, according to the latest UNCTAD Global Investment Trends Monitor.

Investment flows to offshore financial hubs, including offshore financial centers and special purpose entities (SPEs), were increasingly volatile in 2015, according to the latest UNCTAD Global Investment Trends Monitor.

This year’s World Investment Report, the 25th in the series, aims to inform global debates on the future of the international policy environment for cross-border investment.