Global foreign direct investment collapsed in 2020, falling by 42 per cent to an estimated $859 billion from $1.5 trillion in 2019, a report by the United Nations Conference on Trade and Development has shown.
The fall in FDI flows across developing regions was uneven, with -37 per cent in Latin America and the Caribbean, -18 per cent in Africa and -4 per cent in developing countries in Asia. East Asia was the largest host region, accounting for one-third of global FDI in 2020. FDI to transition economies declined by 77 per cent to $13 billion.
Similarly, the 2020 decline in cross-border M&As was cushioned by higher values in the last part of the year. Looking at M&A announcements, strong deal activity in technology and pharmaceutical industries is expected to push M&A-driven FDI flows higher.