Investment potential in Eastern and Central Europe

Since their accession to the EU, the former states of the Eastern bloc have been attractive target countries for investments by German companies.

Almost 10% of investments by German companies currently flow into the Central and Eastern European market, i.e. into new EU countries (accession since 2004) and the Western Balkan states. Russia and Ukraine are somewhat weakened due to the political situation and the big boom seems to be over here. In the other states, growth opportunities are still about 1% higher than in Western Europe.


Not only do low local labor costs and high productivity play a role in the choice of location, but the quality and availability of local suppliers are also high in the states. At the same time, the slowdown in economic growth in several BRICS and emerging countries as well as the shortage of skilled labor in many growth markets is driving investors to Central and Eastern Europe (CEE).

online app

The location is not only interesting as an investment destination, but also offers additional sales markets in the future. According to a survey of 1,500 companies based abroad conducted by the German Chamber of Foreign Trade (AHK), Poland remains the most attractive destination for German investors, followed by the Czech Republic and Estonia.


The infrastructures of the eastern states, the level of vocational training and differences in the tax systems as well as the economic policy environment, which is considered difficult and in which corruption, a lack of predictability and bureaucracy prevail, continue to prove to be disadvantages for traders in https://online-exness.com/payment-methods/.

Czech Republic

The Czech Republic represents the second strongest market after Poland; 88% of the companies surveyed would choose the Czech Republic again as an investment location. Due to the close ties with neighboring Germany, the economy is currently benefiting from its strength - the IMF has forecast growth of 1.9% to 2.0% for 2014 and 2015.

fx chart

The automotive sector even recorded growth rates of 19% in the 1st quarter of 2014, while the pharmaceutical industry and plastics producers are also above average at 10% due to growing domestic demand. Government programs to renovate housing and increase energy efficiency also recently boosted the construction sector.


Telekom expanded its market position in the Czech Republic this year by purchasing shares in T-Mobile Czech Republic worth EUR 800 million. Although this has no impact on Group revenue, it is nevertheless an indicator of the attractiveness of the Eastern European market.


Poland


With 40 million inhabitants, Poland is the most populous country in Central and Eastern Europe (CEE). According to the AHK survey, the sales expectations of investors based there are positive for the coming years, with only 4% of entrepreneurs expecting losses.


Switzerland Global Enterprise sees investment potential in Poland above all in the expansion of infrastructures. Both the renovation and expansion of the rail network, at 22,000 km the longest in Central and Eastern Europe, and regional modernization measures are upcoming projects in the coming years.


In addition, there are good medium- and long-term investment opportunities in the chemical and energy sectors; the construction industry also seemed to have recovered recently from last year's crisis.

CHILDREN IN SCHOLARSHIP PROGRAM 2019

CHILDREN IN SCHOLARSHIP PROGRAM 2020

HEALTHY KITCHENS TO BUILD

Registration Information:

Be in Africa is registered in Madrid in Registro Nacional de Asociaciones, Sección 1ª / Número Nacional 614292.
Our Board of Directors is composed for:
Chairperson: Matilde Cano Llinares
Vice-chairperson: Verónica López Yagües

Secretary: Pedro Manuel García Díaz
Treasurer: Ignacio Javier Baeza Villanueva

Members: Vicente José Candel Tur
Yolanda Villatoro Periañez
Santiago Lillo Sirvent

For your part, Born in Africa (A Foreign NGO) is legally registered in Kampala in National Bureau for Non-Governmental Organisations, Registration Number FORR13805920NB (File No. MIA/NB/2018/05/920).

Know us better!

For more information about our work, write your email below

WhatsApp chat
a2b01004d9c9e19323b3a8a89b29e8cb