According to Ernst&Young publication ‘Attractiveness survey, Europe 2014, Back in the game’, Turkey is showing the best growth in CEE region about attractiveness to establish operations.
There is a growing divergence in the perceived attractiveness of different European countries, and the divide is no longer simply between core and peripheral economies. Western Europe’s rise in global attractiveness is a direct result of positive performances in Germany and the UK. Together they hold 62% of votes for the most attractive FDI destination. Meanwhile, most of other countries gained same or less result, comparing to 2013.
In the CEE we can observe a divergence – Poland and Check Republik are still the leaders of the list, but attractiveness score of both the countries has declined by six and four percentage points respectively. These “mature” countries are losing out to economies in the East, with the main winners being Turkey with 6% (+4 points) and Romania with 9% (+2 points).
Comparing to 2012, in 2013 Turkey is at the 11th place among all Europe and Russia with 3% growth in FDI projects.
Suffering from sluggish growth and unstable economic conditions, many of CEE’s leading FDI destinations saw a decline in 2013. On the whole, FDI projects in CEE declined by nearly 5%, while job creation fell by 4%.
Turkey was a clear exception to this decline. The country had a successful year, with 98 projects started (up from 95 in 2012). Affirming itself as Europe’s new hotspot for large manufacturing
projects, the country drew several large investments in the automotive sector. The US and Germany remain the two largest investors in Turkey, accounting for 24% and 16% respectively.
According to EY report, Most of “emerging Europe” lost its magic; Turkey and Russia arose as new powerhouses.
The emergence of Eastern Europe’s new powerhouses Turkey and Russia have become highly attractive destinations for FDI over the last five years, drawing significant numbers of FDI projects with a significant market potential, skilled workforce and improving business conditions. Turkey did not appear in the top 15 FDI destinations in Europe prior to the crisis. However, between 2009 and 2013, it saw FDI projects surge by 129% accompanied by a 162% increase in job creation, making it the 10th most attractive destination for FDI in Europe.
Also we can note from the report, that there is a similar situation in jobs creation by FDI projects – while job creation in countries such as Poland, Romania and the Czech Republic fell by more than 50%, it increased in Turkey and Serbia by 143% and 157% respectively.
Overall, the report finds that the Europe’s recession finally came to an end, as 2013 turned out to be a record year for European FDI, with the number of inward investment decisions reaching an all-time high of 3,955. This represents a 5% gain over 2012.
The UK, Germany and France continued to lead as the top destinations for investment in Europe, accounting for 50% of the FDI inflows.
Source: EY’s attractiveness survey, Europe 2014, Back in the game