The Global Investment Report: Kazakhstan ranked first in net FDI growth among transition economies
Nur-Sultan, August 31, 2021 - Despite the negative effects of the COVID-19 pandemic on the global economy, by the end of 2020, Kazakhstan showed the largest increase in net foreign direct investment (FDI) among 17 countries with transition economies and 34 landlocked countries.
As their total volume globally decreases by more than one third to the lowest level since 2005, Kazakhstan attracted 34.9% more net FDI than a year earlier. Such data are available in the World Investment Report of the United Nations Conference on Trade and Development (UNCTAD).
The economic crisis due to the pandemic has resulted in significant changes in the structure of international trade and economic relations globally. This was reflected in FDI flows as well.
According to the report, last year the volume of net FDI in the global economy fell by 35%, amounting to a total of $1 trillion to be the lowest in the last 16 years.
The coronavirus crisis has had a particularly strong negative effects in this regard on countries with transition economies.
According to the forecasts of UNCTAD experts, the recovery of FDI flows in this group of countries is expected only in 2022. At the same time, due to structural reforms and the policy implemented by the Government of the Republic of Kazakhstan in the field of attracting investments, according to UNCTAD, Kazakhstan has recorded the largest increase in net FDI inflows among countries with transition economies and landlocked countries.
This growth was ensured by investments in such industries as processing, transport, telecommunications, financial activities, energy, mining, etc.
The total volume of net FDI inflows to the countries with transition economies last year amounted to $24 billion, in Kazakhstan - $3.9 billion. This indicator is higher only in the Russian Federation. A similar rating was compiled among the countries with no access to sea, among which the net inflow of direct investments amounted to $15.4 billion. In this group of countries, Kazakhstan ranked first in terms of net FDI.
The data of the UNCTAD report demonstrates that according to the negative effects of the pandemic on the global economy, favorable conditions for foreign investors remain in Kazakhstan. The country's consistently high positions in international rankings, as well as statistics on attracting FDI, confirm the high investment attractiveness of Kazakhstan, the motivation of investors to start and continue projects, even in a crisis original period.
According to UNCTAD experts, the growth of foreign direct investment inflows in 2021 will average 10-15% globally and 5-20% in developing countries.
View more of the UNCTAD World Investment Report (WIR 2021) at https://unctad.org/system/files/official-document/wir2021_en.pdf