Serbia one of the five most attractive states for investments!
The results of this year's research about attractiveness of Europe as a destination for direct foreign investments showed that Serbia had a 108% growth in the number of created workplaces from 5.104 in 2014 to 10.631
Serbia is one of the five most attractive states for direct foreign investments (DFI) in European industry, and the second for the growth rate of the number of new workplaces created from the DFI, according to the research conducted by the conducted the audit and consulting company Ernst & Young (EY).
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The results of this year's research about attractiveness of Europe as a destination for direct foreign investments showed that Serbia had a 108% growth in the number of created workplaces from 5.104 in 2014 to 10.631 - said Steven Fish, managing partner in the EY company in Serbia, Bosnia and Herzegovina and Montenegro.
- These results set Serbia on the second spot of the top 10 list of criteria for creating new work places from the DFI - said Fish.
Direct foreign investments addressed to Europe reached new record from 5.083 DFI projects in 2015, which represents 14% higher number of projects compared to the previous year, shown by the research of EY company about the activity of European market (European Attractiveness Survey 2016).
This DFI growth opened in Europe 217.666 new workplaces, which is 17% more than the previous year.
Even thought 77% of direct foreign investments were addressed to the countries of Western Europe, the South-East region of Europe records a growth of 9%, while central and eastern Europe 34% .
In Central and Eastern Europe there were 55% new work places thanks to the DFI projects, where 69% of the projects went to the production area.
Despite positive results of DFI in 2015, geopolitical and macro economical situation question the investments.
Global research about attractiveness of European market, in which 1.469 leaders participated, showed that only 22% plans to keep investing in businesses in Europe in the near future, which represents a fall relative to 2014 when 32% of leaders were for expanding business in Europe.
- Despite many geopolitical risks and instability of the business environment, investors still see Europe as relatively safe surroundings for investments. The advantage of Europe lies in digital and logistic infrastructure, trained workforce and stable and well established legal and regulative measures - said Mark Lermit, the leading expert for consulting when choosing international locations for EY company.
He adds, however, that the main obstacles still represent inflexible labor market, expensive workforce and complex taxing system.
EY study showed that intra-European projects continued to dominate last year, with 2.751 investments, which represent 54% of all projects and 108.543 new work places.
Country that gives most investments towards Europe is USA with 1.193 DFI projects, with which 58.437 new work positions were created. Only in the sphere of finance and business, investors from USA created 558 projects and 22.425 new work places.
Asia is joining more and more in investments in Europe with 735 project, 13% more than 2015 with 37.215 new work places. China is the greatest investor from Asia with 238 projects (increase of 2.0%) and 8.917 positions for work. India's investments are also important with 126 projects in Europe, which is 37% more than previous year. India is in top 3 greatest non European investors in the area of business and finances with 55 projects, increase of 22%.
According to the EY research, interest of doing business in Europe is not declining, considering that 49% of the projects is in the area of production, and 62% of new workplaces precisely in this industrial branch.
The greatest influence in growth of DFI activities in the production industry had Poland (117 projects, growth of 34%), Turkey (105 projects, 52% growth), Hungary (69 projects, 103% growth), Serbia (51 project, 76% growth) and Romania (51 project, 21% growth).
Automobile industry recorded a growth in production in Hungary and Poland, while in Serbia, Turkey and Romania the machine industry and equipment production dominates, stated in the report of the EY company.