Multiple factors cited for plunge in 2022 volume of global FDI flows
People displaced by floods travel on a tractor in Jaffarabad, Pakistan on January 9, 2023. FDI is sorely needed to address the world’s multiple crises like health systems in pandemics and climate change mitigation and adaptation. PHOTO | FIDA HUSSAIN | AFP
Global Foreign Direct Investment (FDI) downshifted in 2022 after a 2021 upswing as economies recovered from the Covid-19 slump. Worsening investor sentiment in 2022 reflected fear of a coming recession, rising inflation and interest rates, and uncertainty from the war in Ukraine. High profitability in the fossil fuel sector put at risk recent momentum in climate change investment.
FDI of many types is sorely needed to address the world’s multiple crises. Investment is critical in health systems to recover from Covid-19 and prepare for future pandemics, as well as in both climate change mitigation and adaptation at unprecedented scale.
