2021 turned out to be quite positive for foreign direct investment, despite the ongoing recovery from the pandemic, quarantines and difficulties in supply chains. The annual key report of the United Nations Conference on Trade and Development (UNCTAD), released on June 9, showed a positive trend in international commercial activity. It found that foreign direct investment rose to $1.6 trillion, 64 percent higher than in 2020, and growth in FDI was observed in all regions.
However, there are major doubts that this trend will continue in 2022. Among the main risk factors, UNCTAD notes the protracted health crisis, uncertainty about the pace of vaccinations, especially in developing countries, and continued bottlenecks in the labor market and supply chains. Since the start of the Russia-Ukraine war, inflationary pressure has intensified. Continued restrictions and negative sentiment in the financial market may slow the recovery of the world’s economies this year.
The Geopolitics of the American President