Renewable energy becomes hit of global investors
02:23
In 2021, the global value of foreign direct investment (FDI) increased by 77 percent up to $1.65 billion. Investments in the renewable energy sector had the greatest value.
Developed economies experienced the greatest growth by far, with the inflow of foreign direct investment reaching an estimated $777 billion in 2021. This is three times more than the exceptionally low level in 2020, according to the UNCTAD Conference on Trade and Development in its latest report.
In the European Union, the inflow of foreign direct investment increased by 8 percent y/y in 2021 up to $305 billion. Although the total value of FDI has already exceeded the pre-pandemic level, investment activity in the greenfield sector – that is completely from scratch – remains 30 percent lower than before the outbreak of the pandemic.
What was it like in developing countries? The increase in foreign investment was distributed unevenly between developed and developing countries.
"The recovery of investment flows to developing countries is encouraging, but the stagnation of new investment in LDCs in industries important to production capacity as well as in key sectors of the Sustainable Development Goals (SDGs) – such as electricity, food, and health – is a serious reason for concern,” Rebecca Grynspan, UNCTAD Secretary-General, said.
