Eastern European Foreign Direct Investment

The Vienna Institute for International Economic Studies recently revealed that inflows of foreign direct investment into Eastern European countries will slide as a result of struggles on the western side of the continent.
“On average, FDI flows are forecast to be 3% lower than in 2011,” said the report. “Expectations are supported by plummeting first-quarter FDI flows and greenfield projects.”
Though the Euro zone managed to scratch by without a recession during the first quarter, the economy is shrinking once again. Europe’s crisis has pushed at least 8 of Europe’s countries into recession, and the Group of Seven finally agreed to join forces to lessen the turmoil.
The institute’s prediction of an FDI slide in the region comes after an investment boom in 2011. Still, the improvement did not pass the peak from 2006-2008.
“Large countries like Russia, Turkey and Kazakhstan received the major part of the recent FDI boom, though Hungary, Serbia and Slovakia also significantly improved their positions,” the institute wrote.

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