Anita Angelovska Bezhoska: Investment and finance, challenges for CESEE region

Speaking notes by Ms Anita Angelovska Bezhoska, Governor of the National Bank of the Republic of Macedonia, for the EUROFI Financial Forum, 2018, organised in association with the Austrian EU Council Presidency, Vienna, 5-7 September 2018.

The views expressed in this speech are those of the speaker and not the view of the BIS.

1. Investment in CESEE - historical perspective and recent developments

The investment in spurring growth and supporting productivity and efficiency of an economy is a well-known principle. The larger the investments, the higher the potential to grow. Yet, the investment function is dependent on many factors such as expectations of investors, the already existing capital stock, the general business environment, the level of demand, technological progress, the possibility to invent and innovate, the leverage level, and the access to finance.

Before the outburst of the global crisis, investment was an important growth driver in the CESEE region, though the growth was not sufficient to provide for stronger capital accumulation. Notwithstanding the heterogeneity among countries, prior to the crisis, investment was an important contributor to the overall growth, supported by large capital inflows, which propelled the productivity of the economies, as well.