FDI on the increase in Poland in 2008

Poland and Romania result to be the only two new EU member states to witness increase in FDI inflow this year – states a report prepared by the Vienna Institute for International Economic Studies.

The report suggests that after several-year increase in FDI inflow to the region, the tendency may begin to ease off. In fact, only Poland, Romania, Macedonia and Albania may count, according to the Institute’s forecasts, on the increase in FDI inflow.

The authors of the report analysed statistics concerning 20 countries of the region, taking into account both the new EU member states and also Balkan countries and the former Soviet Union countries. For the second time in a row Russia topped the list with FDI inflow estimated at over 38 million EUR. Poland classified second on the list with near 13 million EUR in FDI. Ukraine and Romania followed in the 3rd and 4th position respectively, both with slightly over 7 million EUR. The first 5 top was closed by the Czech Republic with over 6.5 million EUR.

Recent turbulence in financial markets worldwide had a negative influence, above all, on indebted countries and countries characterised by high budget deficit e.g. Latvia, Hungary and Bulgaria. The authors of the report claim that at the moment it is the difficulty in obtaining a credit for a planed investment that poses the greatest challenge for the investors. However, in the face of the ever stronger Euro, European manufacturers may be forced to seek cheaper locations for their new investments in order to say competitive in terms of prices. What, in turn, may contribute to the new EU member states lasting attractiveness for export oriented investments.

Established in 1973 the Vienna Institute for International Economic Studies conducts analyses and prepares economic development forecasts in the countries of Central, East and Southeast Europe. (Wiener Institut für Internationale Wirtschaftsvergleiche)

Source: PAIiIZ

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