Report on global investment flows from UN experts
Foreign investment flows around the world decreased by 35% last year due to the pandemic and amounted to about $ 1 trillion instead of $ 1.5 trillion in 2019. This is stated in the World Investment Report, which was published today by the United Nations Conference on Trade and Development (UNCTAD). According to UN forecasts, this is the largest investment drop in the last 15 years.
The head of the Investment Development Agency of the Republic of Tatarstan, Taliya Minullina, mentioned this development of the event in her speech at the 2020 Final Board within the framework of forecasts of investment flows for 2021-2022.
“Indeed, we are now expecting a big investment drop, and it is very difficult to talk about new investment projects. Therefore, we need to think about the financial health of those investors who have already entered the Republic of Tatarstan, ”the report said.
International Fund Resident Representative in Russia Annette Kyobe also said that Russia coped with the crisis more easily, thanks to the consolidation that helped during the fall in oil prices in 2014.
“The volume of foreign direct investment has decreased not only in Russia, but throughout the world. This is due to the sanctions, but investments like greenfield, large ones that create jobs, have also declined globally. What national governments can do is protect their investors. It should be noted that the growth of investment in Russia is due to the reduction of bureaucracy, ”said Annette Kyobe.
Among the obstacles to the growth of investments from foreign business, the report of the UN experts noted the upcoming change in the rules of taxation of international corporations. Another obstacle is the policy of some countries, which require businesses to invest and develop production within the country, experts say.