English News / Investment is key to fight Covid-19 Recession
Investment is key to fight Covid-19 Recession
US and Europe facing recession United States is sinking into recession and the Germany economy is particularly fragile, but the Italian economy and other parts of the European periphery are also facing very serious stresses right now as a consequence of trends.Many parts of the Latin American region as similarly vulnerable, for example, Argentina in particular will be struggling as a consequence of the spill over effects of this crisis. For less Developed Countries, whose economies are driven by the sale of raw materials, will not be spared either.
China Outbound Investment China's outbound direct investment (ODI) amounted to $143 billion in 2018, making it the world's second-largest outward investor, new government data showed. However, the number drop 6% in 2019 to $118 billion.
At the end of 2018, the country's accumulated ODI stood at $1.98 trillion, ranking third in the world following the United States and the Netherlands. More than 27,000 Chinese investors had established about 43,000 overseas enterprises in 188 countries and regions by the end of last year, the data showed. China's ODI had seen rapid growth over the past decades, but authorities have set stricter rules in recent years and advised companies to make investment decisions more carefully.
Invest now, to avoid meltdown later
To counter global recession caused by Corona virus after math, Governments need to spend and invest at this point in time to prevent the kind of meltdown that could be even more damaging than the one that is likely to take place over the course of the year, explained UNCTAD.
Expansionary measures i.e. increasing spending or tax cuts, inject cash into the economy, investment is recommended options.