Foreign direct investment – Keep calm & carry on?
Companies have curtailed spending for years. Global geopolitical and economic uncertainties leaving them little other option. Investment-hopefuls globally – think real estate developers, invest promotion agencies – patiently waited for these war-chests to be unlocked. And for the last 2 years indeed, foreign direct investment was up in many regions.
But today a COVID-19 triggered global economic downturn is ever more likely.
I do not have a crystal ball, but corporate savings are likely to be used to offset revenue losses and for supply chain de-risking, to mention just two options. Surely things will get better eventually. But as they do we might well wake-up in a world where FDI strategies of old will be just that.