According to recent estimates by the United Nations Conference on Trade in Development (UNCTAD), global foreign direct investment (FDI) flows have decreased by 42 percent year-over-year in 2020 and will most probably not start to recover until 2022. Even though developed countries have experienced the most significant fall, developing countries are also losing a lot. However, since FDI could be considered a tool to help developing countries coping with the coronavirus crisis, that’s concerning, even though India, for example, has tried to facilitate the inflow of FDI.
Economy 2021 : Last year around this time, we wrote a blog post with the11 events likely to change the world economy in 2020. Like everyone else, we missed the most important one: the COVID-pandemic. But we also got some stuff right: something was in the works with RCEP, the US election (OK, that wasn’t too difficult), and that the German EU-Council presidency would face a few challenging issues. So, we decided not to be discouraged and have another shot at prognosticating which events might shape 2021.
Economic Outlook 2021: The world economy in 2020 was dominated by a massive economic slump in the spring, followed by a rapid recovery in the summer. Then the rising number of infections in the fall halted the recovery process. Economic development in 2021, as it did in 2020, will depend to a large extent on the Coronavirus pandemic.