Global trade shrank by 9 per cent in 2020 despite a late-year recovery in East Asia, according to estimates published on Wednesday by the United Nations Conference on Trade and Development (UNCTAD). The revival as “uneven,” with 8-per-cent fourth quarter growth in global merchandise or goods trade but stagnation in services, UNCTAD said.. While international commerce was “greatly affected” by “economic and social disruptions brought about by Covid-19,” East Asia registered “gains in global market share” after being able to “better weather the challenges of the pandemic,” according to the UN trade body.
DUBLIN — Ireland’s investment promotion agency warned on Wednesday of a “very challenging” two years for the country’s economy if the coronavirus pandemic leads to investment plummeting along predicted lines. Though Ireland is a hub for US businesses operating in the European Union, a looming plunge in global foreign direct investment (FDI) will leave ireland facing “heightened competition,” according to state body IDA Ireland. The United Nations Conference on Trade and Development warned in June of a 40 per cent drop in worldwide FDI due to the pandemic. “We will have to fight harder than ever before for new investment projects,” said Leo Varadkar, Minister for Enterprise, Trade and Employment.
JAKARTA — While global foreign direct investment (FDI) dipped in 2018 for a third consecutive year, Asia bucked the global trend with rises nearly across the board, including record inflows to Southeast Asia’s booming economies. New United Nations Conference on Trade and Development (UNCTAD) data released today (June 12) shows total worldwide FDI fell 13% to US$1.3 trillion in 2018, as global economic uncertainties grew over the US and China’s increasingly antagonistic trade and investment policies, particularly in strategic sectors such as digital and mobile technology. But “developing Asia”, a region encompassing most of the continent aside from wealthy countries such as Japan, saw a 4% rise in foreign direct investment to $512 billion, representing 39% of the global total, according to UNCTAD’s 2018 World Investment Report.
JAKARTA — Southeast Asia is bucking the global trend of falling direct foreign investment, as the low-cost fast-growing region solidifies its position as an attractive location for multinationals. James Dyson’s recent decision to relocate the headquarters of his eponymous technology business to Singapore is not about Brexit, the company said. Rather, the British tycoon said he is looking to a region that continues to exhibit solid growth — “future proofing” as his chief executive termed it. The move follows an October announcement that Dyson — famous for its vacuum cleaners — will make electric vehicles in Singapore, citing the city-state’s proximity to “high-growth markets” in emerging Asia, where annual gross domestic product could grow by 6.1% between now and 2023, according to the Organization for Economic Cooperation and Development. Asia received a third of global investment in 2018 and accounted for nearly all the year’s investment growth, according to the United Nations Conference on Trade and Development. This is despite global foreign direct investment (FDI) declining 19% in 2018. Japanese retailer Aeon opened a second large mall in Cambodia in June as part of its regional expansion plans, which this year will include new shopping centers in Hanoi and Bogor, Indonesia. “As for South East countries, generally speaking, they have been showing rapid economic growth and will keep their pace in future, too,” an Aeon Asia spokesperson said.
JAKARTA — Rising domestic spending across Asia is making many countries in the region less reliant on trade and foreign direct investment, providing them with a buffer against external shocks such as the ongoing tariff spat between Washington and Beijing. While goods imports to and exports from Asian countries rose 14.2% and 11.2%, respectively, in the five years through 2017, they declined relative to the wider economy due to the region’s continued world-beating growth, which hit 5.6% last year, according to new data from the United Nations Conference on Trade and Development. Fernando Cantu, senior statistician at UNCTAD, said the trade openness index (which measures the sum of exports and imports as a percentage of gross domestic product) in the Developing Asia and Oceania region declined to 25% last year from 35% in 2005.
JAKARTA — Myanmar attracted the most foreign direct investment of any of the world’s so-called “least developed countries” in 2017, even as the nation’s reputation plummeted over its forced expulsion of tens of thousands of Rohingya Muslims. The $4.3 billion worth of realized FDI that went into the resource-rich Southeast Asian country put it on top of the global economy’s bottom division of 47 nations, according to a report by the United Nations Conference on Trade and Development. Myanmar edged out second-place Ethiopia, with Asian neighbors Cambodia and Bangladesh taking third and fifth spots. Even so the nations remain far behind Association of Southeast Asian Nations peers such as Indonesia and Vietnam.
JAKARTA — The world’s seaborne trade exceeded 10 billion tons in a single year for the first time in 2015, according to the United Nations Conference on Trade and Development, with about 60% passing through Asia. Sitting between the Indian and Pacific Oceans, Southeast Asia’s big archipelagos should be well placed to capitalize as trade expands. Indonesia and the Philippines comprise about 17,000 and 7,500 islands respectively, while Indonesia, home to the world’s fourth-biggest population — about 260 million people — has the second-longest coastline after Canada. However, the bulk of this seaborne trade is moving between Europe and Asia’s powerhouse economies in China and Japan, mainly through the South China Sea and the Strait of Malacca, which lies between Malaysia and the Indonesian island of Sumatra. “The largest archipelagic countries in the world are not being optimized,” said Fauziah Zen, an economist with the Economic Research Institute for ASEAN and East Asia, at the recent launch of a report on Southeast Asia’s maritime infrastructure published by The Habibie Center, a Jakarta-based research organization.