Coronavirus outbreak could reduce global FDI inflows by 5-15%

UN trade agenda UNCTAD assessed that the outbreak of coronavirus may reduce the inflow of global FDI by 5-15 percent.

UNCTAD previously predicted a stable level of global FDI inflow in 2020-2021, with a potential increase of 5 percent. Now warns that inflows may reach their lowest levels since the financial crisis of 2008-2009 if the epidemic continues throughout the year.

The report says that the negative impact of COVID-19 on investments will be the strongest in the automotive, aviation and energy industries.

The most significant negative changes in the automotive industry so far come from parts manufacturers in the most-affected areas in Southeast Asia while leading car makers in developed economies have not yet registered a shock.

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