Dramatic Capital Outflow in CESEE

Businessn.a. ♦ Published: February 15, 2014; 11:17 ♦ (Vindobona)

The countries of Central, Eastern and Southeastern Europe suffer from the dependence on foreign investments. Despite the economic recovery, FDIs are falling persistently.

Dramatic Capital Outflow in CESEE / Picture: © Vindobona.org

After the outbreak of the financial crisis in 2008/09, the economies in CESEE (Central, Eastern and Southeastern Europe) were more than troubled. Wide parts of CESEE were close to an economic collapse. Due to the Vienna Initiative, the worst could be prevented, though. Foreign banks operating in the region were obliged to hold their positions.

Nevertheless, the capital outflow is…