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Global foreign direct investment slumped 42 per cent in 2020 and is expected to weaken further in 2021 as the Covid-19 pandemic continues to affect the pace of economic recovery, according to the United Nations.
Foreign investment flows plunged to $859 billion at the end of December, down from $1.5 trillion in 2019, the UN Conference on Trade and Development said in its latest
Geneva-based Unctad expects FDI flows to shrink by a further 5 to 10 per cent in 2021, despite a pick-up in trade momentum and signs of an economic recovery.
“Although the global economy is expected to initiate a hesitant and uneven recovery in 2021 … investors are likely to remain cautious in committing capital to new overseas productive assets,” Unctad said in the report. “International investors tend to have a long gestation period and react to crises with a delay, both on the downward slope and in the recovery.”
The US Presidential election – how US investors reacted
The transition to the incoming Biden administration has only just begun. But U.S. advisers are already looking into the future at the 12-month outlook.
January 1, 2021 3 MINS
While the transition to the incoming Biden administration has only just begun, U.S. investors are already looking ahead to the impact on the markets.
Shortly after the election, we commissioned a survey of over 150 U.S.-based financial advisers on their outlook for the next 12 months. The results were revealing.
Benign Conditions
Most U.S. advisors were anticipating benign market conditions, alongside rising interest rates and widening spreads in fixed-income and credit markets. They also thought that U.S. equities would continue to outperform non-U.S., developed market equities. And most thought that information technology, health care and financials would beat other U.S. sectors.