According to recent reports and statistics, China is currently at the top of foreign direct investment. It has been revealed that China was able to bring in more foreign direct investment than any other country during the pandemic. China has even defeated the United States in the race of bringing in foreign direct investments.
As per the figures, China managed to generate $163 billion from inflows in the entire year of 2020. On the other hand, the United States of America was able to generate $134 billion for the same year. The reported was shared during the United Nations Conference on Trade and Development. The report surrounding the foreign direct investments were shared on January 24, 2021.
It was back in 2019 when the United States of America had generated $251 billion from foreign direct investments. On the other hand, China was able to generate only $140 billion from foreign direct investments in 2019.
The reports suggested that it was established that the foreign direct investments were tanked globally. It happened because the small and large countries resorted to virtual stand-stills during the pandemic.
According to the reports, the FDI experienced a 42% plunge in the year 2020 and was down to $859 billion. Even the plunge that the FDI experienced back in 2009 was 30% due to the financial crisis. When measuring the economy of a country, the investments made by businesses and people are analyzed that they make in other countries.
The reports have revealed that the developing countries did not face many economic problems during the pandemic. The countries that are considered developed are the ones that ended up facing huge economic pressures during the year 2020.
The investment percentage in the United States of America dropped by 49% for the year 2020. While the average investment drop percentage was 69%, which is way more than what the United States faced.
The average FDI drop rate experienced in the developing countries was just 12% for the year 2020. Quite surprisingly, China only experienced a 4% drop rate in its FDI and even gained the same amount of percentage by the end of 2020.
The European Union reported that it saw the FDI drop by two-thirds where the United Kingdom saw no new investments coming in. Out of all the European countries, the United Kingdom was the country that was hit really hard by the pandemic.
Even though China was the country where the Coronavirus spread from, yet it was the first country to contain. The prompt actions taken by the country and its health departments ensured that the COVID-10 was controlled.
China was the first country to implement strict lockdowns and curfews to contain the virus spread and the first to start functioning economically.