Current figures of foreign direct investment are negative – Alpha Economics

The issue of attracting investments is one of the key tasks of our economy due to sustainable development, ensuring the main source of foreign currency inflow.

This issue is not new, but it has been the center of attention, especially since 2018, after the promises of an investment boom. After that, not only was there no investment boom, but 2020 and 2021 saw a recession. The situation is different after 2022, mainly due to external factors.

In particular, after 2022, investments increased due to emigrants from Russia. The growth of investments in 2023 was driven by investments from the UAE, which is the effect of re-export, that is, again, an external factor. Much has been said about the weakening of these factors, and it is no coincidence that this year the figures of both total investment and direct investment are negative.

Of course, the consolidated annual statistics will give a more objective picture, but the continuation of these trends sets the stage for forecasting a recession.

As a result, investment-related growth was also caused by external factors, while in this direction, if we turn to politics, the latter could create a negative environment. An example is high-profile cases involving companies working with foreign capital, including those related to shares transferred to the state through non-transparent processes.