The Impact of COVID 19 on Foreign Investors : Evidence from the Quarterly Global Multinational Enterprise Pulse Survey for the First Quarter of 2021

As the Coronavirus (COVID-19) pandemic enters its second year, foreign investors can see light at the end of the tunnel as economic conditions improve. Results from the latest round (Q1 2021) of World Bank Group’s quarterly pulse surveys of Multina...

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Main Authors:	Saurav, Abhishek, Kusek, Peter, Kuo, Ryan, Viney, Brody
Format:	Report
Language:	English
Published:	World Bank, Washington, DC 2021
Subjects:	CORONAVIRUS COVID-19 PANDEMIC IMPACT MULTINATIONAL ENTERPRISE ECONOMIC RECOVERY SUPPLY CHAIN TECHNOLOGY ADOPTION INVESTMENT CAPACITY UTILIZATION
Online Access:	http://documents.worldbank.org/curated/en/755771623997673681/The-Impact-of-COVID-19-on-Foreign-Investors-Evidence-from-the-Quarterly-Global-Multinational-Enterprise-MNE-Pulse-Survey-for-the-First-Quarter-of-2021 http://hdl.handle.net/10986/35803

id	okr-10986-35803
recordtype	oai_dc
spelling	okr-10986-358032021-06-23T05:11:10Z The Impact of COVID 19 on Foreign Investors : Evidence from the Quarterly Global Multinational Enterprise Pulse Survey for the First Quarter of 2021 Saurav, Abhishek Kusek, Peter Kuo, Ryan Viney, Brody CORONAVIRUS COVID-19 PANDEMIC IMPACT MULTINATIONAL ENTERPRISE ECONOMIC RECOVERY SUPPLY CHAIN TECHNOLOGY ADOPTION INVESTMENT CAPACITY UTILIZATION As the Coronavirus (COVID-19) pandemic enters its second year, foreign investors can see light at the end of the tunnel as economic conditions improve. Results from the latest round (Q1 2021) of World Bank Group’s quarterly pulse surveys of Multinational Enterprise (MNE) affiliates suggests that most firms are still operating below full capacity. The pandemic’s adverse effects on MNEs in developing countries continued to ease in the first quarter of 2021 (Q1 2021). Impacts remained widespread with 93 percent experiencing at least one adverse impact, but fewer firms report negative demand, output, revenue, and profit impacts (relative to Q1 2020) than in prior survey rounds. The average magnitude of these impacts was also more limited and continued to ease from Q4 2020. The longer-term outlook for foreign investment in developing countries remains subdued. Overall, 92 percent of firms report that their foreign parent had no plans to change (increase or decrease) the company’s level of investment over the next 1-3 years. Uncertainty about future demand is the key factor holding investment back, but policy and regulatory restrictions are also a factor for almost half of firms. Survey results confirmed that almost all MNE affiliates have increased their adoption of digital technologies for remote working, e-commerce, and supply chain management in response to the pandemic. Half of MNE affiliates also report increasing their focus on sustainability and decarbonization of products and services, with foreign parent companies again playing a critical role. While these survey results may not be generalizable to all developing countries, they are directionally indicative of MNEs’ experiences in developing countries 2021-06-22T17:17:41Z 2021-06-22T17:17:41Z 2021-06 Report http://documents.worldbank.org/curated/en/755771623997673681/The-Impact-of-COVID-19-on-Foreign-Investors-Evidence-from-the-Quarterly-Global-Multinational-Enterprise-MNE-Pulse-Survey-for-the-First-Quarter-of-2021 http://hdl.handle.net/10986/35803 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Investment Climate Assessment
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	CORONAVIRUS COVID-19 PANDEMIC IMPACT MULTINATIONAL ENTERPRISE ECONOMIC RECOVERY SUPPLY CHAIN TECHNOLOGY ADOPTION INVESTMENT CAPACITY UTILIZATION
spellingShingle	CORONAVIRUS COVID-19 PANDEMIC IMPACT MULTINATIONAL ENTERPRISE ECONOMIC RECOVERY SUPPLY CHAIN TECHNOLOGY ADOPTION INVESTMENT CAPACITY UTILIZATION Saurav, Abhishek Kusek, Peter Kuo, Ryan Viney, Brody The Impact of COVID 19 on Foreign Investors : Evidence from the Quarterly Global Multinational Enterprise Pulse Survey for the First Quarter of 2021
description	As the Coronavirus (COVID-19) pandemic enters its second year, foreign investors can see light at the end of the tunnel as economic conditions improve. Results from the latest round (Q1 2021) of World Bank Group’s quarterly pulse surveys of Multinational Enterprise (MNE) affiliates suggests that most firms are still operating below full capacity. The pandemic’s adverse effects on MNEs in developing countries continued to ease in the first quarter of 2021 (Q1 2021). Impacts remained widespread with 93 percent experiencing at least one adverse impact, but fewer firms report negative demand, output, revenue, and profit impacts (relative to Q1 2020) than in prior survey rounds. The average magnitude of these impacts was also more limited and continued to ease from Q4 2020. The longer-term outlook for foreign investment in developing countries remains subdued. Overall, 92 percent of firms report that their foreign parent had no plans to change (increase or decrease) the company’s level of investment over the next 1-3 years. Uncertainty about future demand is the key factor holding investment back, but policy and regulatory restrictions are also a factor for almost half of firms. Survey results confirmed that almost all MNE affiliates have increased their adoption of digital technologies for remote working, e-commerce, and supply chain management in response to the pandemic. Half of MNE affiliates also report increasing their focus on sustainability and decarbonization of products and services, with foreign parent companies again playing a critical role. While these survey results may not be generalizable to all developing countries, they are directionally indicative of MNEs’ experiences in developing countries
format	Report
author	Saurav, Abhishek Kusek, Peter Kuo, Ryan Viney, Brody
author_facet	Saurav, Abhishek Kusek, Peter Kuo, Ryan Viney, Brody
author_sort	Saurav, Abhishek
title	The Impact of COVID 19 on Foreign Investors : Evidence from the Quarterly Global Multinational Enterprise Pulse Survey for the First Quarter of 2021
title_short	The Impact of COVID 19 on Foreign Investors : Evidence from the Quarterly Global Multinational Enterprise Pulse Survey for the First Quarter of 2021
title_full	The Impact of COVID 19 on Foreign Investors : Evidence from the Quarterly Global Multinational Enterprise Pulse Survey for the First Quarter of 2021
title_fullStr	The Impact of COVID 19 on Foreign Investors : Evidence from the Quarterly Global Multinational Enterprise Pulse Survey for the First Quarter of 2021
title_full_unstemmed	The Impact of COVID 19 on Foreign Investors : Evidence from the Quarterly Global Multinational Enterprise Pulse Survey for the First Quarter of 2021
title_sort	impact of covid 19 on foreign investors : evidence from the quarterly global multinational enterprise pulse survey for the first quarter of 2021
publisher	World Bank, Washington, DC
publishDate	2021
url	http://documents.worldbank.org/curated/en/755771623997673681/The-Impact-of-COVID-19-on-Foreign-Investors-Evidence-from-the-Quarterly-Global-Multinational-Enterprise-MNE-Pulse-Survey-for-the-First-Quarter-of-2021 http://hdl.handle.net/10986/35803
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The Impact of COVID 19 on Foreign Investors : Evidence from the Quarterly Global Multinational Enterprise Pulse Survey for the First Quarter of 2021

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