Europe ex­pe­ri­enced for­eign in­vest­ment records last year

Baltic News Network - - News -

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.

Ieva Čīka/LETA

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