UN: Volume of foreign direct investment grew 5% worldwide in 2010; the Czech republic surpassed 2008
27 Jul. 2011 | CzechInvest | According to a report form the UN Conference on Trade and Development (UNCTAD), last year the Czech Republic attracted foreign direct investments in the value of approximately CZK 113 billion, which is roughly 130% more than in 2009.
In comparison with the Visegrad Four countries, the Czech Republic was surpassed by only Poland, which last year attracted investments worth approximately CZK 161.5 billion. Conversely, Czech firms invested roughly CZK 28.4 billion abroad in 2010.
“In terms of investment inflow, the Czech Republic is returning to pre-crisis levels,” says Minister of Industry and Trade Martin Kocourek. “UNCTAD predicts continuing growth in the coming years, though at the same time it also warns against risks, particularly in the form of fiscal instability and inflation. In order to avoid risks while also improving our living standard and the competitiveness of the economy, we want to set up a financial institution which will guarantee that the Czech Republic will not become dangerously indebted and thus threaten the future of upcoming generations.”
“The UN report indicates that the world has emerged from the crisis. In terms of the volume of foreign direct investments, the Czech Republic surpassed the pre-crisis year of 2008 by nearly CZK 5 billion, whereas in 2009 there was a decline of 42% compared with the previous year,” says Miroslav Křížek, CEO of CzechInvest, adding: “The statistics of investments mediated by CzechInvest in the first half of 2011 also look promising. In comparison with the same period last year, we recorded two fewer projects, though the volume of investments surpassed the total for H1 2010 by more than 100 percent.”
Worldwide, the volume of foreign direct investments in 2010 increased by 5% in comparison with the previous year to USD 1.24 trillion. According to data from the UN, however, FDI volume was still 15% lower than before the global economic crisis and nearly 37% lower than in 2007, when it peaked. In its report, UNCTAD predicted that the recovery of FDI flows will continue in 2011 and will reach USD 1.4 – 1.6 trillion, with a further anticipated increase to USD 1.7 trillion in 2012 and USD 1.9 trillion in 2013.
According to Mr. Křížek, the problems against which UNCTAD warns can be ascribed also to investors’ decision-making regarding the Czech Republic. “Fiscal stability and the inflation rate are among the factors that can influence an investor’s decision-making when selecting a country in which to implement an investment. Of course, this applies for the Czech Republic too,” adds Miroslav Křížek.
Where global structures of foreign direct investments are concerned, the report indicated that the volume of investments in services continued to decline in 2010. The sharpest decline was recorded in the inflow of foreign direct investments in the financial sector. Conversely, there was growth in the manufacturing sector. Investments in this area comprised nearly half of all projects. More information is available at http://www.unctad.org/wir. The World Investment Report 2011 in printed form and on CD is available free of charge from CzechInvest.
For more information please contact the CzechInvest Press Centre
Štěpánka Filipová, spokesperson, phone: +420 296 342 538, stepanka.filipova@czechinvest.org
Contact to Ministry of Industry and Trade:
Pavel Vlček, spokesperson , phone: +420 224 853 311, pavel.vlcek@mpo.cz, press@mpo.cz
