Economics

Growth of foreign direct investment in Kazakhstan - UN report

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Despite the negative impact 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 economies in transition and 34 landlocked countries, Kazpravda.kz reports with reference to the press service of the Ministry of Foreign Affairs of the Republic of Kazakhstan.

Against the background of a decrease in their total volume globally by more than one third to the lowest level since 2005, Kazakhstan received 34.9% more net FDI than a year earlier. Such data are contained in the World Investment Report of the United Nations Conference on Trade and Development (UNCTAD).

The economic crisis that broke out due to the pandemic has brought significant changes in the structure of international trade and economic relations in the world. This was reflected in FDI flows as well.

Last year, net FDI in the global economy declined by 35% to a total of $ 1 trillion, the lowest in 16 years, according to the report.

The coronavirus crisis has had a particularly strong negative impact in this regard on countries with economies in transition. 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 economies in transition and landlocked countries. This growth was ensured by investments in such industries as manufacturing, transport, telecommunications, financial activities, energy, mining, etc.

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

A similar rating was compiled among landlocked countries, among which the net inflow of direct investments amounted to USD 15.4 billion. In this group of countries, Kazakhstan ranked 1st in terms of net FDI.

The data of the UNCTAD report show that against the background of the negative impact 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 to implement projects, even during a crisis period.

According to the forecasts of UNCTAD experts, the growth of the inflow of foreign direct investment in 2021 will average 10-15% worldwide and 5-20% in developing countries.

Link to UNCTAD World Investment Report (WIR 2021): https://unctad.org/system/files/official-document/wir2021_en.pdf.
14:04, 31 August 2021
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