FDI and the Ongoing Economic and Financial Crisis

Due to the impact of the ongoing worldwide crisis, Foreign Direct Investments (FDI) flows could decline by more than 20 per cent in 2008. A further decrease in Foreign Direct Investment (FDI) flows can be expected in 2009, as a result of growing investment expenditures. Lower FDI flows to the Central East European Countries (CEECs) faced a setback in 2008 in all parts of the region, after the continuous expansion in 2004 through 2007. CEECs have to do with the global financial turbulence, the declining rate of economic growth in Europe and with home‐made problems in some of the countries. Recession in the developed countries, which are Macedonian traditional foreign trade partners, is expected to have a significant consequence on the external sector in Macedonian economy