The UNCTAD warned that novel coronavirus (2019-NCOV) epidemic would be more vulnerable, and the manufacturing industry of automobiles, aviation and energy equipment would be hit hard.
In a report released on August 3, UNCTAD said the outbreak of the new coronary disease would reduce global foreign direct investment (FDI) by 5-15% compared with the previous forecast.
Among the 100 multinational companies listed by UNCTAD as global economic indicators, many companies reduce capital expenditure in epidemic affected areas, 41 of which have issued early warning, factors affecting reinvestment return and "main driving force" of FDI.
A larger study of 5000 listed companies showed that last month's profit forecast for fy2020 fell by an average of 9% due to the impact of the new coronary disease.
UNCTAD said it expected novel coronavirus outbreaks to further expand its negative impact.
UNCTAD forecasts that in January 2020, the global FDI capital flow will reach US $1.390 trillion in 2019, and it is expected to increase by 5% in 2020. But according to UNCTAD's current forecast, if covid-19 spreads and complicates this year, FDI may decrease to the minimum.
