FOREIGN DIRECT INVESTMENT IN TRANSITION ECONOMIES IN THE CONDITIONS OF COVID-DEPRESSION (COMPARATIVE ANALYSIS)
FOREIGN DIRECT INVESTMENT IN TRANSITION ECONOMIES IN THE CONDITIONS OF COVID-DEPRESSION (COMPARATIVE ANALYSIS)

Summary/Abstract: The given article examines the impact of foreign direct investment on transition economies in the context of the Covid-Depression. The study concludes: The severe consequences of the Covid-Depression can only be overcome by strengthening the role of the state in the economy. The economic downturn of the last six decades has never been so painful. The level of employment, production volume, incomes have sharply decreased; unemployment, poverty, public debt, healthcare costs, etc. have sharply increased. Eeconomic indicators, including investment flow dynamics have deteriorated; around the world, during the Covid-19 pandemic, the volume of foreign direct investment (FDI) fell sharply in global and developed, emerging and transition economies. In transformational economies, foreign direct investment plays an important role in the development of economies - in the creation of gross domestic product (GDP). Consequently, the decline in investment in the Covid-Depression has had a negative impact on economies. In all transition economies (except Montenegro, Belarus and Kazakhstan), the volume of foreign direct investment has decreased everywhere, including in the EU post-Soviet associate countries, Moldova, Ukraine, Georgia, about 10 times, 7 times and 2 times. In addition, there was a decrease of about 14% in the countries of Southeast Europe, and a decrease of 75% in the CIS countries, including Russia (which accounted for more than half of the CIS FDI) decreased almost 3 times, which was reflected more in the sectors of the countries mining and tourism sectors, etc. Financial expenditures on health care, government debt, etc have increased on a large scale. New industrial enterprises and infrastructure projects in developing countries, the real sector of transition countries, tourism, etc. have been particularly severely damaged, which has a particularly negative impact on the development of poor countries. On a global scale, economic recovery problems that cannot be achieved without the growth of the FDI will take some time, as the Covid-Depression continues to rage. Given the slow recovery of the economies, it is unlikely that the FDI will grow rapidly until 2023.

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