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In developing countries, the number of newly announced greenfield projects fell by 42 per cent and international project finance deals – important for infrastructure – by 14 per cent.
FDI flows to small island developing states (SIDS) fell by 40 per cent, and those to landlocked developing countries (LLDCs) by 31 per cent.
Looking ahead, global FDI flows are expected to bottom out in 2021 and recover some lost ground with an increase of 10 per cent to 15 per cent.
“The drop in foreign investment in SDG-related sectors may reverse the progress achieved in SDG investment in recent years, posing a risk to delivering the 2030 Agenda for Sustainable Development and to sustained post-pandemic recovery,” Ms.
Durant said.
The fall in FDI flows across developing regions was uneven, with 45 per cent in Latin America and the Caribbean, and 16 per cent in Africa.
In developing regions and transition economies they were relatively more affected by the impact of the pandemic on investment in global value chain-intensive and resource-based activities.
The fall was heavily skewed towards developed economies, where FDI fell by 58 per cent, in part due to corporate restructuring and intrafirm financial flows.
FDI flows to Europe declined by 80per cent while those to North America fell less sharply (-40 per cent).
In contrast, flows to Asia rose by four per cent, with East Asia being the largest host region, accounting for half of global FDI in 2020..
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