Covid-19 has wreaked havoc on the world economy, inflicting the biggest recession since the 1930s Great Depression. The world's GDP may be 7.5% lower by the end of 2020 than it would have been without the pandemic. More than 15% of young people who were working prior to Covid-19 have lost their jobs globally. Lockdowns have resulted in developments that are already influencing the global economy in technology, banking, and trade. With so much uncertainty in the transactional arena, investors are being more cautious before making any large transactions. Global FDI flows decreased by more than 49% in the first half of 2020, and even in the most optimistic scenario after governments' economic stimulus policies, the numbers do not appear to be improving. The developing countries are impacted even worse since the sectors getting the most FDI, such as primary and manufacturing, are the hardest hit. As a crucial generator of economic growth, FDI might play a significant role in assisting economies during and after the crisis.

KEYWORDS: Economic, Covid-19, Recession, Foreign Direct Investment (FDI).