Kazakhstan received record-breaking net FDI despite COVID-19

Finance Materials 31 August 2021 16:12 (UTC +04:00)
Kazakhstan received record-breaking net FDI despite COVID-19

BAKU, Azerbaijan, August 31

By Nargiz Sadikhova - Trend:

Kazakhstan in 2020 showed the largest increase in net foreign direct investment among 17 countries with a transition economy and 34 landlocked countries, World Investment Report of the United Nations Conference on Trade and Development (UNCTAD) said, Trend reports citing UNCTAD.

The report said that against the background of a total global decrease in FDI by more than one third, which reached the lowest level since 2005, Kazakhstan received 34.9 percent more net FDI than a year earlier.

The economic crisis due to the pandemic has resulted in significant changes in the structure of international trade and economic relations in the world, which has also impacted FDI flows.

According to the report, the volume of net FDI in the global economy fell by 35 percent last year, amounting to a total of USD 1 trillion, the lowest amount in the last 16 years.

In this regard, the coronavirus crisis has had a particularly strong negative impact on countries with economies in transition. According to the forecasts of UNCTAD experts, the recovery of FDI flows for these countries is expected only in 2022.

At the same time, according to UNCTAD, due to structural reforms and the policy implemented by the Government of Kazakhstan in the field of attracting investments, Kazakhstan has recorded the largest increase in net FDI inflows among countries with economies in transition and landlocked countries. This growth was ensured by investments in industries such as manufacturing, transport, telecommunications, financial activities, energy, mining, and others.

The total volume of net FDI inflows to countries with economies in transition amounted to $24 billion last year, in Kazakhstan - $3.9 billion. This indicator is higher only in Russia.

A similar rating was compiled among the landlocked countries, 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.


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