Renewable Energy Jobs Reach 12 Million Globally
After a Big fall Last year, caused by the COVID-19 pandemic, global foreign direct investment (FDI) reached around $ 852 billion in the first half of 2021, showing a stronger-than-expected rebound.
It shows the increase during the first two quarters of FDI, recovered more than 70 percent of losses resulting from the COVID-19[female[feminine crisis in 2020.
For the UNCTADJames Zhan, chief investment officer and enterprise director of, the good news “masks the growing divergence in FDI flows between developed and developing economies, as well as the delay in a widespread resumption of entirely new investments in productive capacity.” .
Mr. Zhan also warns that “uncertainties remain abundant”.
The duration of the health crisis, the pace of vaccinations, particularly in developing countries, and the speed with which infrastructure recovery measures are implemented, remain major factors of uncertainty.
Other important risk factors are labor and supply chain bottlenecks, rising energy prices and inflationary pressures.
Despite these challenges, the global perspectives for the whole year has improved compared to previous projections.
Growth over the next few months is expected to be more subdued than in the first half of the year, but it is expected to further push FDI inflows beyond pre-pandemic levels.
Between January and June, developed economies saw the strongest increase, with FDI reaching around $ 424 billion, more than three times the exceptionally low level of 2020.
In Europe, several large economies have registered significant increases, remaining on average only 5% below quarterly levels before the pandemic.
Entries into the United States increased 90 percent, driven by an increase in cross-border mergers and acquisitions.
FDI flows to developing economies also increased significantly, totaling $ 427 billion in the first half of the year.
There has been an acceleration in growth in East and Southeast Asia (25%), a recovery to near pre-pandemic levels in Central and South America, and increases in several other economies. regions of Africa and West and Central Asia.
Of the total increase in recovery, 75 percent was recorded in developed economies.
High-income countries more than doubled quarterly FDI inflows from their lowest levels in 2020, middle-income economies saw a 30% increase, and low-income economies a further decline of 9%.
Mixed picture for investors
Growing investor confidence is particularly visible in infrastructure, boosted by favorable long-term financing conditions, stimulus packages and overseas investment programs.
International project finance agreements increased 32% in number and 74% in value. Significant increases have occurred in most high-income regions as well as in Asia and South America.
In contrast, UNCTAD says investor confidence in industry and value chains remains fragile. Announcements of new investment projects continued their downward trend, decreasing by 13% in number and 11% in value until the end of September.
The combined value of announced all-new investments and project finance agreements increased by 60 percent, but mainly due to a small number of very large deals in the power sector.
Funding for international renewable energy and utility projects continues to be the fastest growing sector.
Investment in SDG-relevant projects in least developed countries continued to decline rapidly. Announcements of completely new new projects fell by 51% and agreements for financing infrastructure projects by 47%. Both had already fallen 28% last year.