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Global FDI projected to plunge 40% below $1 trillion in 2020

Global FDI projected to plunge 40% below $1 trillion in 2020

Business
Global foreign direct investment (FDI) flows are projected to decrease by up to 40 per cent in 2020, from their 2019 value of $1.54 trillion, according to United Nations Conference on Trade and Development’s (UNCTAD’s) World Investment Report 2020. The projected decrease is expected to bring FDI below $1 trillion for the first time since 2005 (figure 1). In addition, FDI is projected to decrease by a further five to 10% in 2021, and will initiate a recovery in 2022, the report says. “The outlook is highly uncertain. Prospects depend on the duration of the health crisis and on the effectiveness of policies mitigating the pandemic’s economic effects,” said UNCTAD Secretary-General Mukhisa Kituyi. According to UNCTAD, the pandemic is a supply, demand and policy sh...
FDIs drop as ‘hot money’ dominates Nigeria’s $5.85bn imported capital in Q1

FDIs drop as ‘hot money’ dominates Nigeria’s $5.85bn imported capital in Q1

Capital Market
Nigeria’s ability to attract sustainable foreign direct investments (FDIs) remained weak, as the bulk of imported capital continues to be dominated by portfolio investments, otherwise known as ‘hot money’. With oil prices remaining unstable, there are concerns about the quality of investment attracted into the economy, especially when investors are becoming jittery about the stability of the Naira, and the country’s capacity to service its debts. Of the $5.85billion received in the first quarter (Q1) of 2020, portfolio investment accounted for 73.61% ($4.31billion) of the total capital importation recorded by the National Bureau of Statistics (NBS). Indeed, Nigeria received $5.85billion capital importation in Q1 2020 against $8.51billion in Q1 2019. According to...