Attractive countries for investment are in Europe
EY experts conducted market research in various European countries and identified the most attractive countries for investment. In general, there is a favorable business climate, which contributes to business development and attracting new investments. In addition, after the pandemic trends in the segment have changed, the first place is taken by new factors which influence investments.
According to the study, the leaders in the ranking of the most attractive countries for doing business are France, Germany, and the UK. Here over the past year in these states appeared 985, 975, and 930 new projects.
The pandemic has made adjustments to the processes of doing business in Europe, automation and the introduction of modern technology in the work environment have come to the fore. And those companies that were able to quickly digitize their operations, found themselves in the most advantageous position and increased their competitiveness on the market. In Europe, the use of modern technology has now become an integral part of business operations.
Investors also consider sustainability as a factor when choosing a market to invest in and do business in. Of the total number of respondents, 90% said that their investment strategy is developed with this condition in mind. And 85% of the respondents consider the EU to be a leading region in terms of environmental initiatives and the transition to green energy.
An important factor for businessmen is the support of the government, and in this regard, the EU also provides favorable options. European countries have adopted national recovery plans, which involve the large-scale transformation of the economy and social processes. All of them are aimed at long-term changes and have clear stages of implementation, which allows planning activities for the long term.
Transparency of taxation improves the investment climate, which is especially important during the pandemic and the neutralization of its consequences. A prime example is clearly defined corporate tax rates, which affect investment strategies. In addition, a number of European countries have introduced new rules for digital business, which is also an attractive factor for attracting foreign investment.
The study showed that 40% of the companies surveyed plan to expand their business in Europe by the end of this year. At the beginning of the pandemic, this figure was only 27%. Particularly there is an increase in investment in logistics real estate, which is due to the activity on the part of Internet stores. The life science segment is also showing an increase, with direct investment from foreign businessmen increasing by 62%. After the recession, the industrial sector is also gradually developing, although investors here are still cautious.