Central and Eastern Europe (CEE) saw the creation of 50 percent of all FDI jobs in Europe, thanks to the strength of the region in manufacturing, which accounted for 69 percent of the FDI projects in the region, EY’s 2016 European attractiveness survey shows.
Romania, along with Poland and Russia, achieved the highest number of jobs created. Thus, Romania ranks 6th in Europe with over 12,000 new jobs created through foreign direct investment (FDI) in 2015, marking a 17 percent increase compared to the previous year.
In 2015, Europe built on the momentum it established in 2014 and achieved a record level of 5,083 projects (up 14 percent) and 217,666 jobs (up 17 percent) created by FDI.
Western Europe (WE) continues to dominate FDI projects with a 77 percent share (81 percent in 2014). The top three countries in terms of FDI project numbers – the UK, Germany and France – together account for 51 percent of all FDI projects and a third of all jobs created.
Manufacturing & finance and business services, FDI’s drivers
Favorable exchange rates and cheaper oil added to Europe’s industrial competitiveness. However, Germany, the UK and France saw little change in industrial activity, with growth focused in the CEE region. Hungary (69 projects, up 103 percent), Poland (117 projects, up 34 percent), Turkey (105 projects, up 52 percent), Serbia (51 projects, up 76 percent) and Romania (51 projects, up 21 percent) drove FDI in manufacturing facilities.
The automotive sector drove manufacturing growth in Hungary and Poland, while machinery and equipment dominated in Turkey, Serbia and Romania.
“Europe faces fierce competition from other regions when it comes to attracting foreign investors. Europeans need to convince the investors as to why Europe still deserves the close attention of corporations from around the world,” EY survey notes.