“Prospects depend on the duration of the health crisis and on the effectiveness of policies mitigating the pandemic’s economic effects.”
The projected decrease is expected to bring FDI below $1 trillion for the first time since 2005 . In addition, FDI is projected to decrease by a further five to 10% in 2021, and will initiate a recovery in 2022, the report says.
For Nigeria, Foreign Direct Investment constituted only 3.66% to the total capital inflows in the first quarter of 2020. A decline of 16.72% compared to $257.25 million received in Q4 2019 and 13.39% reduction compared to the corresponding quarter of 2019. Indeed, Nigeria received $5.85 billion capital importation in the Q1 2020, against $8.51 billion a year earlier.
The trade organisation stated that multinational enterprises’ profit alerts are an early warning sign, adding that the top 5,000 MNEs worldwide, which account for most of global FDI, have seen expected earnings for the year revised down by 40% on average, with some industries plunging into losses. Lower profits will hurt reinvested earnings, which on average account for more than 50% of FDI.
“The impact, although severe everywhere, varies by region. Developing economies are expected to see the biggest fall in FDI because they rely more on investment in GVC-intensive and extractive industries, which have been severely hit, and because they are not able to put in place the same economic support measures as developed economies,” said James Zhan, UNCTAD’s Director, Investment and Enterprise.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
COVID-19: How To Press the Brakes on the Escalating Global Learning Crisis, By Edwin Ikhuoria - Premium Times OpinionOpinion: COVID-19: How To Press the Brakes on the Escalating Global Learning Crisis, By Edwin Ikhuoria
Read more »
'How livestock industry can hit N50 trillion in 10 years'The Nigeria Institute of Animal Science has said the country’s livestock industry value could rise to at least N50 trillion over the next decade, if it maintains its current 12.7 per cent annual growth rate.
Read more »
Stakeholders laud NNPC’s transparency, N1.01tr profits from NAPIMSIn its first-ever audited report, the Nigerian National Petroleum Corporation (NNPC), revealed that it posted over N1.01 trillion profit from its venture marketing subsidiary, National Petroleum Investment Management Services
Read more »
2020 admission: JAMB announces cut-off marks for varsities, others
Read more »
Burna Boy, Rema, Drake, Others Nominated For 2020 BET AwardsBET has announced the nominees for The BET Awards 2020 with Canadian rapper Drake leading the pack with six nominations..
Read more »