wiiw presents its new analysis of FDI developments: Growth Engine Stutters

06  June 2013    10:00 am CEST


wiiw, Rahlgasse 3, 1060 Vienna, lecture hall (entrance from the ground floor)


Strong growth in FDI inflows was observed in the New EU Member States (+35%) in 2012,despite sluggish economic growth or even contraction of GDP in several countries. In fact,the exceptionally high FDI inflows to the Czech Republic and Hungary were mainly the resultof capital in transit and other financial flows not resulting in fixed investments. By contrast,a decline of 22% was reported in the Southeast European countries including Turkey, whileinflows to the CIS remained flat (+1%) and strongly biased upwards by round-trippingRussian capital. For 2013 experts from the Vienna Institute for International EconomicStudies (wiiw) expect a severe decline in FDI inflows. FDI, which used to be one of the drivingforces of economic development and structural change in the CESEE economies, does nolonger play the role of a growth engine. It is mainly demand driven and cannot escape beingdragged down by the recession in Europe. These are the main results of the new wiiw FDIReport covering 22 countries in Central, East and Southeast Europe (CESEE).The wiiw FDI Database – a new service of wiiw – will go online in July.