Global recession results in lower value of foreign investments

The global economy recession resulted in the fact that last year the global value of investments amounted to a mere $651 billion, which was only half of the amount recorded in 2000. Central and Eastern Europe was an exception, as after a minor drop in 2001, it recorded a record high value of foreign investments amounting to $28.7 billion. However, according to a report presented Tuesday by the Polish Information and Foreign Investment Agency (PAIiIZ), Poland did not benefit from results of the whole region, as the value of FDI amounted to $2.5 billion by the end of June 2003. Over half of this amount came from Dutch companies. Moreover two thirds were the result of taking over existing companies or mergers, with only 3% in greenfield investments. In terms of the accumulated value of FDI, Poland still remains the regional leader with total investments of 24%. "However, in comparison to neighbouring countries the value of FDI in Poland per capita is twice smaller," said Renata Hayder, from Ernst &Young. (Gazeta Wyborcza, p. 22) M.M.