Foreign investments in the world: overview of last year’s dynamics
Last year was marked by a number of major deals for the investment sector, but it did not do without losses. Participants were cautious, closely followed the global processes and only then made the decision to conclude the deal. According to analysts, foreign investment in the world was most concentrated in the US and Chinese markets. The EU states lost a part of financing, which was earlier, the volume of investments from foreign businessmen decreased by about 15%. As for Russia, the number of direct foreign investments has doubled. Such results are presented in UNCTAD’s report, which was prepared by the UN for the World Economic Forum recently held in Davos.
Experts reported that the global investment volume decreased by 1.4% last year. If in 2018 the amount of global investment was $1.41 billion, then in 2019 this figure has decreased to $1.39 billion.
The share of investments in the markets of countries with developed industries decreased by 6%. At the same time, financial flows to emerging economies remained at the same level.
As in the previous couple of years, the largest market for investors is the USA. Last year the country received $251 million, while $140 million was sent to China. Singapore is also an attractive investment destination in terms of private equity, having received $110 million. There is good dynamics in the Russian market, investments in the local market amounted to $33 million, which is 2 times more than in the previous period.
Flows to the North America region amounted to $298 million – these results remained at the level of last year. But if we look at the volume of money invested in developed economies, it fell by 6% to $643 million, which is almost half the record level of 2007.
The trend that is observed in the investment sphere of the states with developed industry is well visible in the example of the European Union. Here the investment flow has decreased by 15% and is fixed at $305 million. Analysts note that the situation in the markets of the countries with developing economies has not changed practically for the year: here the investment streams make 695 million dollars that occupies a share in almost 50% of all volume of world investments.
According to experts’ forecasts, this year investors’ activity will increase, albeit insignificantly. However, it should be taken into account that the volumes of world investments depend on the geopolitical situation, which at the moment remains quite tense.