Financial Times FT.com

Investment slowdown fears for central Europe

By Jan Cienski in Warsaw and Thomas Escritt in Budapest

Published: May 12 2009 03:04 | Last updated: May 12 2009 03:04

Central Europe has been hard hit by the global economic downturn, but the pain has not yet persuaded many investors to close recently built factories that have sprung up across the region in the past decade.

The reason is that factories tend to be more modern than their counterparts in western Europe and central European labour – helped by recent declines in local currencies – is still significantly cheaper than in more developed parts of the continent.

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