TEHRAN (Iran News) – The United Nations Conference on Trade and Development (UNCTAD), in its latest investment report dubbed “International Tax Reforms and Sustainable Investment”, has said foreign direct investment inflow to Iran increased by 6.4 percent in 2021 compared to the previous year.
The report, published on June 9, put the Islamic Republic’s FDI inflow at $1.429 billion in 2021, while the figure stood at $1.342 billion in 2020.
According to the report, Iran also had $82 million in foreign direct investment in other countries in 2021, up from $78 million the previous year.
UNCTAD has also put the global foreign direct investment in 2021 at $1.582 trillion, indicating a growth of 64 percent compared to the previous year. The figure stood at $962 billion in 2020.
“Global flows of foreign direct investment recovered to pre-pandemic levels last year, reaching $1.6 trillion. Cross-border deals and international project finance were particularly strong, encouraged by loose financing conditions and infrastructure stimulus. However, the recovery of greenfield investment in the industry remains fragile, especially in developing countries,” the report said.
This fragile growth of real productive investment is likely to persist in 2022. The fallout of the war in Ukraine with the triple food, fuel, and financial crises, along with the ongoing COVID-19 pandemic and climate disruption, is adding stress, particularly in developing countries, UNCTAD said in its report.
Global growth estimates for the year are already down by a full percentage point. There is a significant risk that the momentum for recovery in international investment will stall prematurely, hampering efforts to boost finance for sustainable development, it added.
The United Nations Conference on Trade and Development was established in 1964 as an intergovernmental organization intended to promote the interests of developing states in world trade.