Kazakhstan - Leader in Attracting Investments in the Post-Soviet Space (UNCTAD)
The United Nations Conference on Trade and Development (UNCTAD) has released a report on global investments for the year 2022. According to the report, the net inflow of foreign direct investments (FDI) to Kazakhstan amounted to $6.1 billion, the highest figure in the past 5 years and 83% higher than in 2021. This is the highest indicator among the post-Soviet countries.
In terms of net FDI inflows, Kazakhstan holds the first place in the post-Soviet space. Uzbekistan follows with $2.5 billion, Lithuania with $2.2 billion, Georgia with $2 billion, Belarus with $1.6 billion, Latvia with $1.5 billion, Estonia with $1.2 billion, Armenia with $998 million, Turkmenistan with $936 million, Ukraine with $848 million, Moldova with $587 million, Kyrgyzstan with $291 million, and Tajikistan with $174 million. Azerbaijan and Russia rank at the bottom of the list, showing negative results of -$4.5 billion and -$18.7 billion, respectively.
It is important to note that net FDI inflows to Central Asia increased by 39% and amounted to $10 billion, with Kazakhstan accounting for 61% of that.
Furthermore, there is a 6% growth in net FDI inflows to 32 landlocked developing countries, among which Kazakhstan is also the leader. Ethiopia follows with $3.7 billion, Uzbekistan with $2.5 billion, and Mongolia with $2.5 billion.
Additionally, Kazakhstan ranks 5th among developing economies in terms of attracting net investments in renewable energy projects during the period of 2015-2022, with a total of $56.3 billion.
Overall, the report's results show that global net FDI flows decreased by 12% in 2022 to $1.3 trillion, following significant growth in 2021. The main reasons for this decline are the conflict in Ukraine, high food and energy prices, and increasing government debt in countries worldwide.
The decline primarily affected developed countries, where net FDI inflows decreased by 37% to $378 billion. Meanwhile, flows to developing countries increased on average by 4%.
The United Nations Conference on Trade and Development (UNCTAD) is the main body of the United Nations General Assembly in the field of trade and investment. It was established in 1964 and is headquartered in Geneva, Switzerland. Within the UN system, UNCTAD serves as a coordinating center for development issues and related topics in trade, finance, technology, investment, and sustainable development. Its main tasks include promoting global economic development through the development of recommendations, principles, organizational and legal conditions, and mechanisms for the functioning of modern international economic relations. The organization conducts research and policy analysis, intergovernmental meetings, technical cooperation, and interaction with civil society and the business sector.
You can read the full report by following link: https://unctad.org/system/files/official-document/wir2023_en.pdf