Hungary has seen the largest increase in FDI inflows in the past decade

Lithuania takes the second spot, experiencing a 2.51% rise in FDI inflows. As a result, the Eastern European country secured the tenth spot among the nations that benefitted the most from FDI in 2022, receiving more than $1 billion – 2.57% of its GDP. This remarkable growth could be attributed to the country’s robust international relations that offer investors access to international markets, in addition to its business-friendly tax policies.

The Eastern European region countries experienced the most significant increase in FDI inflows, with Hungary, Lithuania, and Estonia topping the list. Austria follows in fourth place, with a 1.91% growth in FDI over the last fiver years, peaking in 2021 with a 1.37% surge. In fifth place is Sweden, with an average growth of 1.33% in FDI over the same period. This could be attributed to Sweden’s stable political and economic environment over the last decade, as well as being ranked the 10th best country for ease of doing business by the World Bank in 2020.

Fiona Cincotta, financial market expert at City Index, comments:

“The growth in foreign investment inflows that’s occurred across Eastern Europe has been substantially greater than anywhere else. One of the major contributing factors to this growth is the surge in tech hubs, which are an attractive prospect to foreign investors as the technology sector is evolving at an astounding pace. Evidence of this shows as Central and Eastern Europe are now home to 34 unicorns.”

– City Index were keen to uncover which countries benefited the most from foreign investment.