Abstract
Subject Central European FDI from China. Significance Growing interest from China, one of the world's largest outward investors, comes at a critical time for Central Europe (CE), where GDP is returning to pre-crisis levels. Hungary's hopes to return to investment grade, alongside Czech ambitions to sustain impressive growth, make both receptive to new sources of foreign direct investment (FDI) in 2016-17. Although political risk is rising in Poland, attracting new sources of FDI from Asia remains part of government policy, following President Andrzej Duda's state visit to China in late 2015. Impacts Following an expected pick-up in FDI inflows into CE in 2015, foreign capital investment will strengthen further in 2016. FDI inflows are not expected at pre-crisis levels before 2025, as economies reorient towards an investment-led growth model. Hungary and Poland will benefit from recent Chinese FDI in industrial machinery, logistics and chemicals. Czech manufacturing and real estate are set to benefit most from Chinese investment in the near term.
Published Version
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