• search
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Coronavirus pandemic will cut global investment flows more than feared: UN

By PTI
|

Geneva, Mar 26: The global COVID-19 pandemic is now expected to take a far worse toll on foreign direct investments worldwide than feared just a few weeks ago, UN economists said Thursday.

Pandemic will cut global investment flows more than feared: UN

A fresh report from the UN Conference on Trade, Investment and Development (UNCTAD) warned that the rapid spread of the coronavirus would cause a "dramatic drop" in global foreign direct investment, which is a measure of cross-border private sector investment.

The agency said it now believed that global FDI could be as much as 40 percent lower than its projections in January, when it had expected to see up to five percent growth this year and next. That compares to a forecast it issued just two weeks ago, in which it said that FDI would be up to 15 percent lower than its January projections, in a worst-case scenario.

Efforts to halt the spread of the new coronavirus, which has killed nearly 22,000 people worldwide and infected more than 500,000, have wreaked havoc on international business and are rapidly pushing the world into a global recession.

"Projections of the economic impact of COVID-19 are becoming more serious by the day," Thursday's report said. It said "early expectations that the impact would be felt first and foremost through the ripple effects caused by production stoppages and supply chain disruptions in East Asia... and felt especially in economies that are closely integrated in global value chains are being overtaken by events."

"It is now evident that pandemic mitigation efforts and lockdowns around the world will have devastating effects on all economies, independent of their links to global supply networks," UNCTAD said. The "consensus is that most if not all major economies will experience a deep recession", it added.

For Daily Alerts
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more
X