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Global FDI hit 15-year low in 2020, China overtook US: OECD data

PARIS (Reuters) - Global foreign direct investment flows ebbed to a 15-year low last year and China, one of the few major economies to eke out growth, overtook the United States as the top destination, OECD data showed on Friday. As the coronavirus wreaked havoc on the global economy, global FDI flows dropped 38% in 2020 to $846 billion, the lowest level since 2005, according to the Paris-based Organisation for Economic Cooperation and Development. That represented only 1% of global gross domestic product, a level not seen since 1999. A recovery in cross-border mergers and acquisitions activity in the latter part of 2020 and so far this year could fuel a rebound in FDI in 2021, the OECD said.

IDB: 2020 tax revenues decline in Caribbean

Article by Social Share Washington –The Inter-American Development Bank (IDB) says tax revenues rose moderately across Latin America and the Caribbean (LAC) in 2019 before declining sharply in 2020 as the coronavirus (COVID-19) pandemic drove down global economic activity. The Washington-based financial institution said revenue statistics in Latin America and the Caribbean 2021, shows that the average tax-to-gross domestic product (GDP) ratio in the LAC region rose to 22.9 per cent in 2019, an increase of 0.3 percentage points, due largely to increases in the Caribbean sub-region. Although the COVID-19 pandemic subsequently caused a sharp decline in tax and resource revenues in 2020, the report identifies the key role of fiscal policy in the region’s response to the pandemic and considers how tax policy can contribute to a green and inclusive recovery.

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