Global investment flows rebound in first half of 2021


Global foreign direct investment (FDI) flows in the first half of 2021 reached an estimated $852 billion, showing stronger than expected rebound momentum, according to UNCTAD’s Investment Trends Monitor.
The increase in the first two quarters recovered more than 70% of the loss induced by the COVID-19 pandemic in 2020.
“The rapid FDI recovery and the optimistic outlook mask the growing divergence in FDI flows between developed and developing economies, as well as the lag in a broad-based recovery of the greenfield investment in productive capacity. Furthermore, uncertainties remain abundant,” said James Zhan, UNCTAD’s director of investment and enterprise.
Developed economies saw the biggest rise, with FDI reaching an estimated $424 billion in the first half of 2021 more than three times the exceptionally low level in 2020.
In Europe, although the bulk of growth was due to reversals in countries with significant conduit movements, several large economies saw sizeable increases, on average remaining only 5% below pre-pandemic quarterly levels.