Crown Prince to outline domestic and foreign policy priorities during Shoura Council address Wednesday    Hajj Ministry launches catering challenge to foster innovation in services to pilgrims    Saudi Arabia slams Israel's use of blockade and starvation as tactics to impose forceful displacement    Crown Prince reaffirms full support to Qatar in call with Emir    PIF chief says Saudi transformation could outpace China's, outlines 'filtration' investment process The Fund to unveil its next five-year strategy soon    Arcapita acquires C&K Paving, expanding its global business services portfolio    Israel carries out attack against Hamas leadership in Qatar    French PM François Bayrou loses crucial confidence vote in parliament    Czech Republic and allies break up Belarus spy network in Europe    Turkey restricts internet access amid opposition standoff    Anastacia: Arnold Schwarzenegger made me sing Whatta Man 12 times    Saudi Real GDP records growth of 3.9% in Q2 2025    PIF signs MoU with Macquarie Asset Management to boost investments in infrastructure and energy transition    Thousands pay their last respects to Giorgio Armani, private funeral on Monday    French doctor goes on trial for poisoning 30 patients, 12 fatally    The key to happiness    Gamers frustrated as Hollow Knight: Silksong crashes stores on launch    Mike Tyson and Floyd Mayweather Jr. set to meet in exhibition boxing match in 2026    Al Hilal sign Turkish defender Yusuf Akcicek on €22m deal until 2029    Al Qadsiah sign German midfielder Julian Weigl to strengthen defensive midfield    Al Ahli secure Flamengo starlet Matheus Gonçalves in long-term deal through 2027    Sholay: Bollywood epic roars back to big screen after 50 years with new ending    Ministry launches online booking for slaughterhouses on eve of Eid Al-Adha    Shah Rukh Khan makes Met Gala debut in Sabyasachi    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Global FDI halved amid pandemic, but China remains resilient
Published in The Saudi Gazette on 27 - 10 - 2020

Foreign direct investment (FDI), a bellwether of globalization and economic confidence, fell by 49 percent to $399 billion in the first half of 2020, amid the upheaval caused by the coronavirus pandemic, a new report from the UN trade and development organization UNCTAD showed on Tuesday.
FDI includes cross-border mergers and acquisitions, international project finance, and corporate investments in new "greenfield" projects abroad, and it can be an indicator of the growth of the corporate supply chains that play an important role in world trade.
Worse than expected
James Zhan, the director of UNCTAD's Division on Investment and Enterprise, said the slump in FDI flows in the first half of the year was more drastic than expected.
"This was due to the lockdowns around the world, which slowed existing investment projects, and the prospects for deeper recession which led the multinationals to reassess new projects.
"And that's the current mood of the investors — they try to be very conservative at this stage," he said at a press conference in Geneva.
All major forms of FDI and all regions suffered from the slowdown, although developed economies were worst hit, with FDI flows of $98 billion in the six months — a 75 percent reduction from a year previously.
China holds course
However, China was bucking the trend, with FDI flows relatively stable at $76 billion in the first half of the year, while Hong Kong bounced back as an FDI destination after a weak 2019.
"Overall investment flows into China remain at a high level and this is partly because China was one of the very few countries, among the first, to control the pandemic and to resume its production system in the country.
"In the meantime the Chinese government put in place effective measures to retain investment, to service operations of the multinationals operating in the country, and also put in place new measures to attract investment," Zhan said.
Most of the FDI heading to China went into high-tech industries. The value of Mergers and Acquisitions transactions into China, grew by 84 percent, mostly in information services and e-commerce industries, while several multinational companies also expanded their investments into China, he added.
Global outlook highly uncertain
The global outlook remains highly uncertain, with question marks over the duration of the pandemic and the effectiveness of the policy response, but prospects for the full year remain in line with UNCTAD's earlier projection of a 30-40 percent decline, Zhan said.
The rate of decline in developing economies is expected to flatten because of the signs of impending recovery in East Asia, but the global decline is expected to continue, with a further reduction of 5-10 percent foreseen in 2021, the UNCTAD official added.
FDI is the most important source of external funding for developing economies — outstripping remittances, bank loans and overseas development assistance. The current value of FDI invested in projects around the world is equivalent to 42 percent of annual global GDP, said Zhan. — UN News


Clic here to read the story from its source.