In a context where global foreign investment increased by 10.9% in 2013, in particular in Europe (+25.2%) and in Latin America (+17.5%), FDI flows to developing economies reached a new high of US$759 billion. However macroeconomic fragility and policy uncertainties are driving investors to caution.
Working in partnership but also sometimes in competition, French and German companies together represent over 60% of foreign direct investment in Slovakia, especially in the key energy, automotive, telecommunications and services sectors.
The 2008-2009 fall in international investment and the crisis of the euro zone which deepened in 2011 have had an impact on the country and continue to weigh heavily on foreign investment flows bound for Slovakia. The country is indeed highly vulnerable, given that a very large share of its FDI directly depends on the euro zone. The FDI influx in 2013 totalled USD 2.8 billion.
Despite the crisis in Europe, the continued upgrading of national infrastructure since 2012 still presents great opportunities for FDI and the country remains attractive to foreign investors. However, Slovakia's economy is now more than ever dependent on the economic health of its European neighbours, especially Germany and France.
Information on the 2013 FDI influx in this region can be accessed in the Global Investment Trade Monitor published in January 2014 by the United Nations Conference on Trade and Development (UNCTAD).
|Slovakia||Eastern Europe & Central Asia||United States||Germany|
|Index of Transaction Transparency*||3.0||7.0||7.0||5.0|
|Index of Manager’s Responsibility**||4.0||5.0||9.0||5.0|
|Index of Shareholders’ Power***||6.0||9.0||5.0|
|Index of Investor Protection****||4.7||5.9||8.3||5.0|
Source: Doing Business - Last Available Data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
|Foreign Direct Investment||2011||2012||2013|
|FDI Inward Flow (million USD)||3,491||2,826||591|
|FDI Stock (million USD)||51,980||55,816||58,832|
|Performance Index*, Ranking on 181 Economies||144||-||-|
|Potential Index**, Ranking on 177 Economies||52||-||-|
|Number of Greenfield Investments***||91||64||69|
|FDI Inwards (in % of GFCF****)||15.7||15.4||3.1|
|FDI Stock (in % of GDP)||54.2||61.1||61.4|
Source: UNCTAD - Last Available Data.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
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Last Updates: December 2014