Monthly Report No. 3/2019


Richard Grieveson, Mario Holzner, Gabor Hunya and Leon Podkaminer

wiiw Monthly Report No. 3, March 2019
47 pages including 6 Tables and 31 Figures

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  • Chart of the month: European investment since the crisis
    by Richard Grieveson
  • Opinion corner: How to fill Europe’s investment gap 
    by Mario Holzner
    Investment in the EU has been declining since the outbreak of the global financial crisis. While Europe was indulging in self-destructive austerity, China was inter alia building a huge high-speed rail network. Given the big weight of German public investment in the EU, it is pivotal that Germany reverses the course of its fiscal policy. In this column we suggest a coordinated pan-European infrastructure investment project inspired by the Chinese Belt and Road Initiative – the ‘European Silk Road’.
  • Recent investment trends in CESEE countries: supply-side fundamentals of the catch-up are weak 
    by Leon Podkaminer
    It is suggested that capital formation in CESEE countries is insufficient for safeguarding a sustained income catch-up with the developed countries. The recent slowdown in investment growth which started in 2009 yet cannot be blamed on inadequate investment profitability. In fact, profitability is generally much higher than in the years 1995-2005. 
  • Outward FDI and intra-regional integration of EU-CEE11 countries
    by Gábor Hunya
    Outward FDI is still of much smaller magnitude than inward FDI in EU-CEE11, while the net FDI position is only loosely linked to the level of economic development. The level of outward FDI has increased over time but not in all countries of the region. A significant share of outward FDI has been within the region but the share of intra-regional investment has declined in the case of the larger investors. 
  • Monthly and quarterly statistics for Central, East and Southeast Europe


Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database

Keywords: investment, gross fixed capital formation, EU, austerity, connectivity, infrastructure, convergence, productivity, FDI, economic integration

Countries covered: CEE, China, CIS, European Union, Turkey, Western Balkans

Research Areas: Macroeconomic Analysis and Policy, Regional Development