RSS
Romania, 6th in Europe for jobs created with direct foreign investments
With 17% increase against 2014, Romania ranked 6th in Europe last year with 12,000 jobs, in the top of jobs created with direct foreign investments according to EY European Attractiveness Survey 2016.
Foreign investments in Europe reached a historical top with 5,083 projects which generated 217,666 new jobs. Western Europe continues to be the most attractive destination for direct foreign investments in Europe, cumulating 77% of all projects. Great Britain, Germany and France have together 51% of such projects in Europe.
As for new jobs, Central and Eastern Europe generated half of the total number of jobs, attracting 69% of projects in the production sector.
Geopolitical and macroeconomic challenges attached to Brexit can affect investment intentions in the near future, according to the EY study.
It is for the first time when a member state leaves the union, so impact and direct consequences are hard to anticipate. Companies will have to activate plans for unexpected situations and to start adjusting long term plans. The economic impact for near future will influence the investors’ confidence and expectations. Uncertainty on the future of commercial relations between UK and EU will slow down investments in certain industries, both in UK and on the continent. The capital flow to Great Britain may drop, the pound will have a lower position and the IPO and M&A activity will also slow down. A thing is sure: major changes concerning trade, labour market and public policies will not happen overnight. Consequently, companies have time to make long term plans to meet these challenges,” says Bogdan Ion, Country Managing Partner EY Romania.
Intra-European projects continue to dominate the activity of direct foreign investment project - 54% of the total number of projects and 108,543 newly created jobs. The United States are leaders in the top of direct foreign investments in Europe - 1,193 projects and 58,437 newly created jobs and is the main overseas country investing in Europe. In the financial sector of business services, the US generated 558 projects and 22,425 new jobs. Asia has also intensified its activity in Europe, with 735 projects and 37,215 new jobs in 2015. China is the biggest Asian investor in Europe with 238 projects (+2% increase) and 8,917 new jobs.
Metropolitan London ranks first in the classification of urban areas, in point of the number of projects attracted in 2015 - with 406 of the 1,065 projects in Great Britain, followed by Paris metropolitan area, with 159 projects. Munich and Bavaria region in Germany had the most rapid increase for investors in 2015, by 134% against the previous year, followed by Berlin.
London was considered the most attractive European city, followed by Paris, which has remarkably improved its activity by 14% against the previous year. According to the investors’ statements, top 10 of cities preferred for direct foreign investments include three German cities - Berlin, Frankfurt and Munich- and two Spanish cities - Barcelona and Madrid. Rome appears as having joined Top 10 recently, with an increase of 5% of direct foreign investment activities compared to last year.
The attractiveness of the European production sector remains intact, attracting 49% of projects and 62% of new jobs. In the production sector the increase of direct foreign investments was recorded in Poland (117 projects, +34%), Turkey (105 projects, +52%), Hungary (69 projects, +103%), Serbia (51 projects, +76%) and Romania (51 projects,+21%). Germany replaced Great Britain as the most attractive destination for projects in transport and communications (81 projects, +72%), while Great Britain surpassed Germany as preferred destination for retail and tourism projects (43 projects, +26%) in 2015. The automobile sector recorded increases in the production sector in Hungary and Poland, while production of machines and equipment dominated investments in Turkey, Serbia and Romania.