Poland a top investment target
International business executives quizzed by research firm CSA on behalf of Ernst&Young indicated Poland as the world's fourth most attractive country for investment and an absolute leader in the CEE region.
According to the 2005 European Attractiveness Survey, Poland is now ahead of the three traditionally most attractive European countries, Germany, the United Kingdom and France, which is mostly due to the country's low labor costs.
This perception, although not precisely reflecting the actual investment choices, shows that the center of gravity for investments in Europe has moved eastwards. Although when classified by regions Western Europe is still the first-choice investment area, CEE occupies a strong second position with the gap between the two leaders narrowing quickly, which is probably due to EU enlargement.
The year 2004 witnessed the remarkable rise of China as a foreign-investment target and this year the country only strengthened its advantage over competitors. Both China and CEE are the preferred zones for production sites with Western Europe remaining the brains behind the operations as the favorite area for headquarters, R&D centers and back offices.
Poland also came top of the heap due to its cheap labor and the availability of industrial sites. The uptrend is expected to continue as Poland is also a leader when it comes to considered destinations for new investment or expansion projects in Europe. It is followed by Russia, Germany and Hungary.
The development of countries in CEE, the opening up of their markets and the advantages they offer in terms of productivity and flexible employment conditions, all combine to push them forward. For Western Europe the future seems less certain as the region was only mentioned as a potential destination by a mere 29 percent of investors.
Declarations, however, do not always correspond with the real decisions. Although foreign investors acknowledge the attractiveness of the new, developing investment areas, when it comes to making concrete decisions, they still have a considerable preference for Western Europe.
According to the 2005 European Attractiveness Survey, Poland is now ahead of the three traditionally most attractive European countries, Germany, the United Kingdom and France, which is mostly due to the country's low labor costs.
This perception, although not precisely reflecting the actual investment choices, shows that the center of gravity for investments in Europe has moved eastwards. Although when classified by regions Western Europe is still the first-choice investment area, CEE occupies a strong second position with the gap between the two leaders narrowing quickly, which is probably due to EU enlargement.
The year 2004 witnessed the remarkable rise of China as a foreign-investment target and this year the country only strengthened its advantage over competitors. Both China and CEE are the preferred zones for production sites with Western Europe remaining the brains behind the operations as the favorite area for headquarters, R&D centers and back offices.
Poland also came top of the heap due to its cheap labor and the availability of industrial sites. The uptrend is expected to continue as Poland is also a leader when it comes to considered destinations for new investment or expansion projects in Europe. It is followed by Russia, Germany and Hungary.
The development of countries in CEE, the opening up of their markets and the advantages they offer in terms of productivity and flexible employment conditions, all combine to push them forward. For Western Europe the future seems less certain as the region was only mentioned as a potential destination by a mere 29 percent of investors.
Declarations, however, do not always correspond with the real decisions. Although foreign investors acknowledge the attractiveness of the new, developing investment areas, when it comes to making concrete decisions, they still have a considerable preference for Western Europe.
