UN: Russo-Ukraine war damaging business, investment climate

The Russian war against Ukraine is weighing on global foreign investment, according to the UN Conference on Trade and Development (UNCTAD), along with a series of other factors, with poorer countries worst impacted.

"This year, the business and investment climate has changed dramatically as the war in Ukraine results in a triple crisis of high food and fuel prices and tighter financing,'' the agency said.

The agency made this known on Thursday in its World Investment Report.

It said the renewed pandemic risks, the likelihood of further interest rate rises, negative sentiment in financial markets and a potential recession were further factors hindering investment.

The initial data for the first quarter of 2022 said there had been a significant decline in investment for new locations and in international acquisitions.

Foreign investment recovered last year, reaching pre-crisis levels after the severe impact of the pandemic in 2020.

Total investment reached nearly 1.6 trillion dollars according to UNCTAD, up from 1.5 trillion dollars in 2019.

However, mainly industrialised countries benefitted from the recovery, with 134 per cent more foreign investment than in 2020.

In developing countries, the inflow was about 30 per cent higher than in 2020, the data showed.

The main recipient countries of foreign investment were the U.S., China, Hong Kong, Singapore, Canada, Brazil, India, South Africa, Russia and Mexico.