World Investment Report June 2020

• The 30th annual World Investment Report published in June 2020 identified industries that are most and least likely to receive foreign direct investment (FDI) in light of COVID-19's economic impact.
• According to the report, investment promotion agencies expect that the information and communication industry is more likely to yield investment projects (p. 10).
• The industries of food and beverage, pharmaceuticals and agriculture are also more likely to yield investment projects in light of COVID-19 (p.10).
• On the other hand, services industries that were directly hit by lockdown measures are expected to suffer.
• These include accommodation, food services, and transportation and storage industries including airlines (p.5, see also Table I.2 on p.6).
•  Commodity-related industries are also projected to suffer from COVID-19 as well as falling oil prices (p.5).
• Some industries in manufacturing such as automotive and textiles are also affected by supply chain disruptions (p.5).
• These industries are projected to lose a significant percentage of earnings which may affect their investment capability through 2021.

S&P Global April 2020 Report

• S&P Global published its report "Industries Most and Least Impacted by COVID-19 from a Probability of Default Perspective – March 2020 Update" on April 7, 2020.
• The article calculated a one year probability of default (PD) using stock price movements and asset volatility to determine the most and least affected industries.
• According to S&P Global, the top 5 industries most impacted by COVID-19 are airlines, casinos and gaming, leisure facilities, auto parts and equipment, and oil and gas drilling.
•  Airline businesses are affected by grounding of air traffic and border restrictions which have raised concerns about viability of several airline brands.
•  Casino and gaming as well as leisure facilities have been impacted by the implementation of social distancing as well as postponement of sporting events including the Summer Olympics.
• While the auto parts and equipment industry has benefited from government stimulus packages, the oil and gas drilling industry suffered from low demand due to travel restrictions.
• On the other hand, the top 5 industries least affected by COVID-19 are property and casualty insurance, health care REITs, multi-line insurance, life and health insurance, and industrial REITs.