Key findings:

• 1. More Fortune Global companies locating in CEE-6 will increase demand for commercial real estate.
• 2. Financials and Consumer Goods & Retail companies are very under-represented.
• 3. Energy companies are relatively absent, perhaps for structural reasons.
• 4. Technology is over-represented: encouraging for the future positioning of the CEE-6 in the world economy.
• 5. Regarding origins, the major European countries are very visible, as are those from USA and South Korea in most countries.
• 6. China is very under-represented across the region in percentage terms, as are the likes of Canada, Taiwan, Australia and India.
• 7. The ratio of the Fortune Global 500 companies present versus population size is much higher in Slovakia, Hungary and the Czech Republic.
• 8. This correlates with the very high exports-to-GDP ratio prevalent in these three countries.
• 9. FDI flows are most markedly strong into Hungary, presently.
• 10. The number of “high-value-added” (high revenues/ employee) companies in the CEE-6 is very low.

Foreign Direct Investment has played a big role in the development of the economies and the commercial real estate market across the CEE-6 over the last 30 years.

The “FDI into CEE infographic” takes a look at the spread of companies invested in the CEE-6 countries via an analysis of the constituents of the Fortune Global 500 index. The number of these global majors present in the region varies from 61 in Slovakia and Bulgaria to 140 in Poland. Whilst Poland is the biggest economy, the ratio of the Fortune Global 500 companies present versus population size is much higher in Slovakia, Hungary and the Czech Republic. This correlates with the very high exports-to-GDP ratio prevalent in these three countries. Bulgaria follows, neatly, on both these measures. Romania and Poland have lower ratios. This might shield these larger countries somewhat if global trade is slowing, as it appears to be presently, but all the CEE-6 have significantly higher exports-to-GDP ratios than the global average (sitting at 29%).

FDI flows are most markedly strong into Hungary, presently, registering a high 6.5% of GDP in 2018. This momentum appears to be continuing in 2019. The other countries register lower levels, ranging from 1.8%-2.9% of GDP for 2018.

The analysis of FDI flows over the last decade and a half suggests high numbers of Global Fortune 500 companies from the Automotive, Industrials, Food, Beverages & Tobacco, Telecom & Media and Transportation sectors across the region. Technology, interestingly, is over-represented as well. This is encouraging for the future positioning of the region in the world economy. Large Financials and Consumer Goods & Retail companies are very under-represented. Energy companies are also relatively absent, perhaps for structural reasons. In terms of country of origin of Fortune Global 500 companies, China is very under-represented across the region in percentage terms, as are the likes of Canada, Taiwan, Australia and India. The major European countries are very visible, as are those from USA and South Korea in most countries.