Europe experienced foreign investment records last year
Last year, Europe attracted a record large volume of foreign investments with 5,845 new direct investment projects, which is 15% more than the year before, according to results of EY European Attractiveness Survey.
Latvia commenced 38 new investment projects last year, which is 22.5% more than the year before, with the number of investment projects reaching the highest point in the past ten years.
New investment projects helped create 585 new jobs in Latvia last year.
EY analysis shows that 51% of all new investment projects in Europe were attracted by UK, Germany, France and Spain. Poland was the first Central European country to be included in the TOP 5 of leading European countries investment attractionwise. The most rapid increase in the attraction of new foreign investment projects was demonstrated by Sweden (+76%), Italy (+62%) and Czech Republic (+57%). The number of new investment projects in Latvia (38) was twice as large as the number in Estonia (19) and slightly lower than the number of projects in Lithuania (44). Lithuania had experienced the biggest increase in the number of new jobs (2,606) among Baltic States (598 in Estonia and 585 in Latvia) last year.
«The study on foreign investments reveals a number of important lessons for Latvia’s economy – we see that the majority of investments are attracted by either developed markets with excellent infrastructure and highly educated labour force or countries with a large domestic markets, beneficial positions in the region and moderate costs,» says EY partner in Baltics Guntars Krols. Continuing, he adds that Latvia has neither. «We have to look for our own path, and we will likely find it in high added value, new companies, IT and communication areas.» EY study shows that Poland has reached very impressive results in the attraction of new jobs – 22,074 new jobs created thanks to investment projects put this country on the second place in Europe after UK (43,165 new jobs). These countries are followed by Germany (19,961), Romania (17,545), France (16,980), Serbia (16,396) and Russia (15,064).
EY study also reveals that London remains a leader in the attraction of direct investments – it received approximately 40% of Britain’s foreign investment volume last year. London as a city attracts more direct investments than entire countries like Spain and Poland.