UN Sees Strong Rebound in Global Investment Outlook for 2021

(Bloomberg) -- Global foreign-direct investment flows showed a strong rebound in the first half of 2021 led by high demand for infrastructure projects, according to the United Nations Conference on Trade and Development.

Global foreign-direct investment totaled $852 billion in the first half of 2021 versus $957 billion for all of 2020 and $1.48 trillion in 2019, according to the report. 

Developed countries saw the biggest rise in foreign direct investment -- reaching $424 billion in the first half of 2021, the report said. 

Foreign investment inflows into the U.S. jumped 90% on a surge in cross-border mergers and acquisitions during the first half of the year. Inflows of foreign investment in East and Southeast Asia accelerated by 25% during the same period. 

The UN agency said growth of foreign-direct investment flows will likely return to pre-pandemic levels, but the outlook hinges on several key factors, including:

• the duration of the global health crisis
• vaccination rates in developing countries
• labor and supply chain bottlenecks
• energy prices, and
• inflationary pressures.

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