Global foreign direct investment (FDI) flows recovered in the first half of 2021 to reach $852 billion, according to a UN report released Tuesday.
The figure surged 78% this January-June compared to the same period last year which saw a 70% decrease due to the virus, according to the UN Conference on Trade and Development (UNCTAD).
Developed economies saw the biggest increase in FDI, which rose to an estimated $424 billion in January-June – more than three times the level during the pandemic in 2020.
In the first half of 2021, compared to 2020 on a quarterly basis, high-income countries more than doubled their FDI inflows with a 117% jump, and middle-income economies saw a 30% increase, while low-income economies recorded a 9% decline.
As for sectors, infrastructure recorded a 32% rise during that period, however greenfield investment project announcements had a 13% decline.
Some of the factors that create uncertainty and risks include duration of the pandemic, vaccinations in developing countries, pace of implementing infrastructure investments, labor shortages, supply chain bottlenecks, energy prices, and inflationary pressures, according to UNCTAD.
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