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Focus – Investment rate in the region

Investment Rate in the Visegrád Group

András Giday
Economist, PhD in Economics

Published in: Public Finance Quarterly 2015/2 (p. 171-193.)

SUMMARY: The region’s post-crisis investment rates of 18 to 22 per cent are made sustainable by a higher level of savings. Where the rate is lower, three major factors are at play: development in the energy industry is on a smaller scale (Hungary), public investment is low (Slovakia), and industry-specific investment rates have fallen (Poland). Despite their high levels of gross profit, the investment rate of foreign companies does not exceed that of their national counterparts. In the years of the crisis, public investments had a stabilising effect, in which EU funds also played a role.

KEYWORDS: investment, government expenditures, Central and Eastern Europe


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