Brace for slowdown in investing, UN report warns

UN economists are forecasting a drop of up to 15 percent in foreign direct investments worldwide as COVID-19 has wreaked havoc on international business.

A fresh report from the UN Conference on Trade and Development (UNCTAD) warns that regardless of how quickly the COVID-19 outbreak lasted it would significantly drag down global FDI, which is a measure of cross-border private sector investment.

The UN agency points to estimates that growth in the global economy will slow between 0.5 and 1.5 percent this year, depending on whether the outbreak is reined in during the first half of this year or if it rages through the end of 2020.

The corresponding “downward pressure on FDI will be 5-15 percent,” the report says.

— AFP