InvestChile Blog

FDI news | Policies & Tools | Business data analysis | Investment location trends

UNCTAD forecasts drop of between 30% and 40% in FDI globally due to coronavirus

InvestChile - March,27,2020

The organization has updated its forecasts about the impact of Covid-19 on global FDI flows. It was previously forecasting a reduction between 5% and 15%.

drew-beamer-Se7vVKzYxTI-unsplash

The United Nations Conference on Trade and Development (UNCTAD) has updated its forecasts about the impact of the Covid-19 pandemic on global foreign direct investment (FDI) flows and now anticipates that there could be a drop of between 30% and 40% in 2020, a trend that would persist into 2021.

In its previous report, UNCTAD forecast a drop of between 5% and 15%, due to the spread of coronavirus, its economic impact and downward revisions of the earnings of the largest multinational companies.

UNCTAD explained that forecasts of the expected economic impact of Covid-19 “are becoming more serious by the day”. Early expectations that the impact would be felt primarily through production stoppages and supply chain disruptions in East Asia and, particularly, China, affecting economies that are closely integrated into global value chains, are being overtaken by events, it indicated.

“It is now evident that pandemic mitigation efforts and lockdowns around the world will have devastating effects on all economies, independent of their links to global supply networks,” the report stated.

“The economic situation is complicated at the global level, where activity in general will slow and that will have an impact on foreign investment in our country. At InvestChile, we are working to minimize this impact and foster reinvestment by the overseas companies that are already in the country so as to reactivate the economy once the current emergency has passed,” said the director of InvestChile, Cristián Rodríguez.

Foreign Investor's Guide

Topics: Coronavirus- UNCTAD- COVID-19- FDI Flows- Foreign Direct Investment- Global FDI

InvestChile

InvestChile

We are the government agency responsible for promoting Chile in the global market as a destination for foreign direct investment, serving as a bridge between the interests of overseas investors and the business opportunities the country offers and providing world-class services that are in line with the country’s economic development policies.

Previous Post

Women hold 10% of the board seats in large companies

Next Post

Anglo American to inject US$1,413 million into Chilean subsidiary

NEWSLETTER

Subscribe to our newsletter

Receive in your e-mail publications and news about how to guide your investment project in Chile

Subscribe to Our Newsletter

You can also suscribe to our Investment Review

* indicates required

100% Privacy. No Spam.

Related Posts

Visas and foreign citizens

We invite you to obtain a complete guide of residence laws and regulations for investors and foreign workers in Chile.
Learn More