It is more urgent than ever for governments to attract foreign investment. Excellent interview by Alex Irwin-Hunt, FDI Intelligence
1️⃣ Huge accumulation of public debt, particularly in developing countries, has made it more difficult for governments to invest – thus also weighing on economic growth. Foreign direct investment (#FDI) is a way for countries to bring in more capital without the need to borrow more.
2️⃣ The fragmentation of global trade and investment networks has a net negative impact on the global economy. Indeed, global trade of goods declined by 2.2% in 2023, compared to a year earlier. Distortions and trade restrictive policies are weighing on the global economy.
3️⃣ Competition for foreign investment is fiercer than ever. Incentives and other concessions have become increasingly used by governments, especially in Europe and North America. Developing countries must undertake reforms to improve institutions and policies in their bid to attract FDI.