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The Financial Express

Global FDI drops moderately in 2019: UNCTAD

FE Online Report | Published: January 20, 2020 18:59:06 | Updated: January 21, 2020 10:25:29


Global FDI drops moderately in 2019: UNCTAD

Foreign Direct Investment (FDI) across the world dropped by 1.0 per cent last year, according to a primary estimation of the United Nations Conference on Trade and Development (UNCTAD).

UNCTAD’s latest Investment Trends Monitor (ITM) report, released on Monday evening, said that global FDI remained flat at US$1.39 trillion in 2019 while it was $1.41 trillion in 2018.

“This is against the backdrop of weaker macroeconomic performance and policy uncertainty for investors, including trade tensions,” said the ITM.

“FDI flows to developed countries remained at a historically low level, decreasing by a further 6.0 per cent to an estimated $643 billion,” it added.

“FDI to the European Union (EU) fell by 15 per cent to $305 billion, while flows to the United States remained stable at $251 billion,” the UN report continued.

According to the ITM, flows of FDI to developing economies remained unchanged at an estimated $695 billion.

It also showed that FDI increased by 16 per cent in Latin America and the Caribbean and 3.0 per cent in Africa.

Despite a decline of 6.0 per cent, flows to developing Asia continued to account for one-third of global FDI in 2019, mentioned the report adding that flows to transition economies rose by two thirds to $57 billion.

UNCTAD also estimated that though FDI increased in India by 16 per cent last year, it declined by 6.0 per cent in Bangladesh to $3.40 billion and 20 per cent in India to $190 billion.

Bangladesh Bank, however, unveiled nine-month data on inflow of FDI in the country. It showed that the net inflow of FDI declined to $2.15 billion in January-September period of 2019 which was $2.26 billion in the same period of 2018.

Annual FDI in the country was recorded at $3.61 billion in 2018 which was highest ever in the history of Bangladesh.

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