| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : EU Economy Last Updated: May 29, 2014 - 4:37 PM

Germany, UK and France are Europe's most popular locations for FDI
By Michael Hennigan, Finfacts founder and editor
May 28, 2014 - 2:55 AM

Email this article
 Printer friendly page

Germany UK and France are Europe's most popular locations for foreign direct investment (FDI) according to a report published Tuesday. Germany continues to be seen as the most attractive FDI destination in Europe. Forty percent of investors in a poll put Germany first, up two percentage points from 2013). Germany was particularly favored by  companies doing business in Central and Eastern Europe: 63% of them voted it the most attractive FDI destination in Western Europe. The UK (22%) is second in these perception ratings, gaining +6 percentage points on last year - - the highest gain witnessed by any European country.

FDI into Europe reached an all-time high last year, according to EY’s (Ernst & Young) annual European Attractiveness Survey [pdf]. The report, now in its 12th year, combines an analysis of international investment into Europe over the last year with a survey of more than 800 global executives on their views about how and where global investment will take place in the next decade.

The 3,955 investment decisions in 2013 represent an all-time high, "showing investors’ confidence in a resilient and adaptable Europe." In 2013, 166,343 jobs were created through FDI in 42 European countries, down 2% from 2012 but still 15% below pre-crisis levels.

The UK once again took the lead in terms of FDI with 799 projects in 2013, an increase of 15% with Germany also showing a strong increase of 12% to 701 projects. More surprisingly France seems to have halted its decline as an investment destination with a project increase of 9%. Although Spanish investment fell by 19%, after the spike in 2012 caused by bargain hunters, it stayed in fourth place with Belgium and the Netherlands in fifth and sixth places respectively. Ireland logged 111 projects in 2013 according to the survey down from 123 in 2012.

More than half of FDI projects in 2013 were announced in three countries: the UK, Germany and France. Spain, Belgium, the Netherlands, Ireland and Finland experienced a stable year, securing, between them, 18% of FDI projects and 17% of jobs. Central and  Eastern Europe (CEE) drew 5% fewer investment projects than in 2012, as the crisis reduced the number of projects from Western European automotive companies and shared services outsourcers.

Software and business services remained the leading FDI sectors in Europe in terms of projects, with 509 (up 27%) and 483 (down 31%) respectively. Nearly half of the software projects originated from US-headquartered companies. 

The other big winners in the year in terms of sectors were Pharmaceutical and Scientific research increasing 58% (to 141) and 96% (to 88) respectively. Unsurprisingly research and development showed a significant increase of 23% when project type was analyzed (with a 64% increase in job creation). Manufacturing showed an increase of 5% but job numbers were down 12%, investors remaining wary of Europe’s high labor costs. 

Intra-European investment is Europe’s major source of FDI but, in terms of investment at a country level, the US remained Europe’s single leading FDI generator, accounting for 1,027 (or 26% of the total) inward investment projects in 2013. The UK increased its share of US investment projects – up from 26% to 27%, nearly double that of its closest competitor, Germany. 

Overall, however, US investment fell 2%. By contrast investment from the BRICs significantly picked up with project numbers increasing 28% overall to 313 and job creation increasing 37% to reach 16.900 jobs. Chinese investment has increased three-fold in the last six years with Indian and Russian investment also at an all-time high in 2013. There was a similar upswing in the numbers of jobs that were created by BRIC projects – up 37%. Germany overtook the UK as the top destination for investment from the BRICs up 50% from last year.

The report says much of the overall improvement or decline in a country’ prospects for FDI was decided by its leading cities. Investment projects into London were up 21% to 380. London now takes nearly half of all the FDI projects into the UK, the highest proportion of any major European country. The major German cities of Düsseldorf and Darmstadt also saw major increases of 25% and 40% respectively. Helsinki was the fastest growing city in Europe with nearly 50% more projects. Other major European cities such as Paris, Barcelona and Dublin failed to attract as much new investment and it had a major impact on their countries’ overall rankings. 

Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

EU Economy
Latest Headlines
Spain's strong recovery to slow in the next few years
Italy's Mezzogiorno is Achilles' heel of Euro Area - lowest birth rate since 1862
Euro Area GDP grows at weak 0.3% in Q2 2015
German GDP up 0.4% in Q2 2015; France's GDP stagnates
Germany's Surplus: Lots of critics; Credible solutions scarce
Euro Area industrial production dips in June and May after a flat April
Greece faces two years of recession according to EU officials
High EU youth unemployment rate not as bad as it seems
Eurozone retail PMI surges to highest since January 2011
ECB monetary policy still tight for Southern Europe
German exports fell in June — surplus at record; Exports up 13.7% year-on-year
Eurozone manufacturing sector continued to expand in July
Weak euro unlikely to have significant impact on Euro Area growth
Is Euro Area Ireland's top trading partner?: EU28 is overwhelmingly UK's
German car firms boost exports from Spain, UK, Portugal, Czech Republic, Slovakia, Hungary and Romania
Flash Eurozone manufacturing/ services PMI close to four-year high despite Greek crisis
Krugman calls euro a Roach Motel; Hotel California gets 1-star grade
Greece & Euro Crisis: July 2015 articles from Finfacts
Greece and other poor countries in Euro Area will not become rich
Euro Area manufacturing/ services PMI hits four-year high in June
Western European car market: Recovery continues
Greece could become a failed state like Venezuela
Multinational companies pay on average 30% less tax than domestic competitors in EU
EU's list of 30 tax havens omits the biggest 4 in Europe
China to invest in Juncker's European investment fund
Greek talks collapse; Game theorists gambling with future — Germany's vice-chancellor
German exports and industrial production in strong rises in April
Tackling Inequality: Scandinavian countries have the most successful welfare systems in Europe
Eurozone unemployment fell by 130,000 in April 2015 — down 849,000 in 12 months
Eurozone service sector business activity slowed during May
German 2015 GDP forecast cut; Jobless level at 24-year low
Eurozone manufacturing in modest acceleration in May
FDI into Europe at record in 2014; UK on top: Germany location for future investment
Eurozone economy loses growth momentum; Jobs growth rises
Athens leak suggests Juncker has plan for Greece
Draghi will not end QE early but warns of risks
Eurozone grows faster than US and UK in Q1 2015
German GDP at slower pace, France faster in Q1 2015
Germany may cut income tax; Germans still shun risky investments
Germany had record exports and imports in March 2015