China was the largest recipient of FDI in 2020: Report

(Reuters) – China was the largest recipient of foreign direct investment in 2020, when the coronavirus outbreak spread around the world during the year, with the Chinese economy having generated $ 163 billion in inflows.

The $ 163 billion inflows from China last year, compared to $ 134 billion attracted by the United States, the United Nations Conference on Trade and Development (UNCTAD) said in a report released on Sunday.

In 2019, the United States received $ 251 billion in tickets and China, $ 140 billion.

China’s economy accelerated in the fourth quarter, with growth exceeding expectations, as it ended up in a remarkably good situation against the coronavirus in 2020 and remained positioned to expand further this year, even as the global pandemic continues to grow.

China’s gross domestic product grew 2.3% in 2020, official data showed last week, making China the only major economy in the world to avoid a contraction last year.

The world’s second largest economy has surprised many with the speed of its recovery from the coronavirus shock, especially as lawmakers have also had to deal with tense US-China relations in trade and elsewhere.

Overall, global FDI collapsed in 2020, falling 42% to an estimated $ 859 billion from $ 1.5 trillion in 2019, according to the UNCTAD report.

“FDI ended 2020 more than 30% below the minimum after the global financial crisis in 2009,” said UNCTAD on Sunday.

FDI flows fell 37% in Latin America and the Caribbean, 18% in Africa and 4% in developing Asia, the report added.

East Asia was responsible for one third of the global FDI in 2020, while FDI flows to developed countries fell by 69%.