Your browser does not support JavaScript!

CEE region funding challenges


Before the Covid-19 outbreak, CEE economies were enjoying relative economic stability, but potential growth forecasts in the region were deteriorating. In addition, there was a persistent investment gap in the region, particularly for Non-Financial Companies (NFCs).

The economic impacts of the current sanitary crisis will need to be evaluated, however the trends above mean that the growth and financing model of the region will need to evolve in the coming years. The growth model in the region involved a great deal of foreign investment going into labour-intensive industries and infrastructures, as well as portfolio capital coming into foreign-owned banks, both of which are expected to diminish in the future.

Financing infrastructure and manufacturing plants will remain a priority, but there will be a need to place a greater emphasis on domestically driven productivity growth and the financing of more innovative, technology-intensive and high-growth industries.

This will require developing workforce skills and a higher capacity to invest in intangible assets, which would involve a greater recourse to capital market funding, the development of which is however challenging.

Contributions to the policy debate

Extracted from the main Eurofi publications (Regulatory Updates, Views Magazines and Conference Summaries)