WASHINGTON (Pakistan Point News / Sputnik - 08th March, 2020) The United Nations Conference on Trade and Development (UNCTAD) expects the outbreak of the coronavirus disease (COVID-19) to slash previously expected foreign direct investments globally by up to 15 percent.
"The outbreak and spread of Coronavirus (Covid-19) will negatively affect global foreign direct investment (FDI) flows. With scenarios of the spread of the epidemic ranging from short-term stabilization to continuation throughout the year, the downward pressure on FDI will be -5% to -15% (compared to previous forecasts projecting marginal growth in the FDI trend for 2020-2021)," UNCTAD said in a statement on the coronavirus outbreak.
Negative implications for investments will come both from demand and supply sides, but the countries with the strongest virus outbreak will be hit most, the UN agency noted.
More than two thirds of the top 100 multinational enterprises in UNCTAD's rating already unveiled their expectations for the impact of the virus outbreak on their businesses, with many of them reining in capital expenditures and slashing earnings forecasts.
