FDI IN CENTRAL, EAST AND SOUTHEAST EUROPE: SLUMP DESPITE GLOBAL - - PowerPoint PPT Presentation

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FDI IN CENTRAL, EAST AND SOUTHEAST EUROPE: SLUMP DESPITE GLOBAL - - PowerPoint PPT Presentation

Wiener Institut fr The Vienna Institute for www.wiiw.ac.at Internationale International Economic Wirtschaftsvergleiche Studies wiiw FDI Report 2016 FDI IN CENTRAL, EAST AND SOUTHEAST EUROPE: SLUMP DESPITE GLOBAL UPTURN EUROPE: SLUMP


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Wiener Institut für Internationale Wirtschaftsvergleiche The Vienna Institute for International Economic Studies

www.wiiw.ac.at

FDI IN CENTRAL, EAST AND SOUTHEAST EUROPE: SLUMP DESPITE GLOBAL UPTURN

wiiw FDI Report 2016

  • Dr. Gábor Hunya, senior economist, wiiw

hunya@wiiw.ac.at

EUROPE: SLUMP DESPITE GLOBAL UPTURN

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2 35000 40000 45000 EU-CEE Western Balkans Turkey CIS-3 + Ukraine Russia

FDI inflows in 2015 as against 2014: EU-CEE -43%, Western Balkans and Turkey: +48%, CIS-3 and Ukraine: -3%, Russia: -60%

Erratic fluctuations of FDI in the EU-CEE and Russia 

5000 10000 15000 20000 25000 30000 35000 2010 2011 2012 2013 2014 2015 EUR million EU-CEE = new EU members of Central and Eastern Europe, CIS-3 = Belarus, Kazakhstan, Moldova. Source: wiiw FDI Database .

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FDI – limited contribution to gross fixed capital formation

20 25 EU-CEE Western Balkans + Turkey CIS-4 + Ukraine

FDI inflow in % of GFCF, 2008-2015

Source: wiiw FDI Database and wiiw Annual Database. 5 10 15 2007 2008 2009 2010 2011 2012 2013 2014 2015

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FDI less important than EU transfers in financing investments

Transfers FDI net FDI liability 15 20 Czech Republic 10 15 20 25 30 35 Hungary

Transfers on the capital account, FDI net (assets minus liabilities) and FDI liabilities (inflows), in % of GFCF

Source: wiiw FDI Database.

  • 5

5 10 2008 2009 2010 2011 2012 2013 2014 2015

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5 10 2008 2009 2010 2011 2012 2013 2014 2015 5 10 15 20 2008 2009 2010 2011 2012 2013 2014 2015 Poland 5 10 15 20 2008 2009 2010 2011 2012 2013 2014 2015 Romania

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FDI in- and outflows, EUR billion

Russia: FDI collapse and capital flight (EUR 15 bn in 2015)

Three quarters of FDI in tax havens – round-tripping Russian capital

50 60 FDI inflow FDI outflow

Source: wiiw FDI Database. 10 20 30 40 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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Greenfield FDI projects 2010-2015: number of projects, announced capital investment in EUR million and number of jobs to be created

More greenfield investment in 2015, but still behind past years

2000 2500 300000 350000 Number of projects (right scale) Capital investment Job creation

Source: fdimarkets.com. 500 1000 1500 2000 50000 100000 150000 200000 250000 2010 2011 2012 2013 2014 2015

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Number of greenfield projects and capital investment pledged in greenfield projects by activity, EUR million, 2013-2015

Greenfield investment grew mainly in manufacturing

1400 1600

60000 70000 Manufacturing Sales, logistics Electricity Construction Advanced services Other

Source: fdimarkets.com.

200 400 600 800 1000 1200 1400

2013 2014 2015 Number of projects 10000 20000 30000 40000 50000 60000 2013 2014 2015 EUR mn

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WIIW FDI REPORT 2016: FDI in Central, East and Southeast Europe: Slump despite Global Upturn

149 pages including 105 Tables, 10 Figures and 5 Boxes, analysis

and methodological explanations

hardcopy: EUR 70.00 (PDF: EUR 65.00)  Order via wiiw-website www.wiiw.ac.at,

per E-Mail koehrl@wiiw.ac.at Online acces to wiiw FDI Database via www.data.wiiw.ac.at Annual fee: EUR 160.00