Impact of the COVID-19 pandemic on global FDI and GVCs

The comparison with the global financial crisis can provide some insights on order of magnitude. The actual negative impact of COVID-19 could be significantly worse on several accounts. Updated estimates of COVID-19’s economic impact and revisions of earnings of the largest multinational enterprises (MNEs) now suggest that the downward pressure on FDI flows could range from -30% to -40% during 2020-2021, much more than previous projections of -5% to -15%.