GLOBAL INVESTMENT TREND MONITOR

GLOBAL INVESTMENT TREND MONITOR

Context:

On 19 January 2022, the UN Conference on Trade and Development (UNCTAD) Investment Trends Monitor was published.

Important Report Findings:

• According to the report, in 2021, the flow of Foreign Direct Investment (FDI) to India was 26% lower than in 2020 because the major M&A deals recorded in 2020 did not repeat.
• Global FDI flows have shown a strong rebound in 2021. It has grown to 77% and reached USD 1.65 trillion.
• In 2020, the flow of FDI was USD 929 billion.
• Recovery of investment in developing countries is encouraging.
• According to the report, developed economies have seen tremendous growth. FDI reached an estimated USD 777 million by 2021, three times more than 2020.

Major Cause For Concern:

• However, the stagnation of new investment in the least developed countries in all major industries in the manufacturing sector and key Sustainable Development Goals (SDGs) such as food, health, and electricity is a significant cause for concern.

United Nations Conference on Trade and Development (UNCTAD):

• UNCTAD was established in 1964 as an intergovernmental body by the United Nations General Assembly.
• It aims to promote the interests of developing states in international trade.
• It presents its reports to the United Nations Economic and Social Council and UN General Assembly.