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Thursday, September 17, 2020

Stats Gate

One In Five Investments In Europe Concerns Digital Technology

The field of digital technology is an attraction for foreign capital investing in Europe. Almost one in five foreign direct investments in Europe (19%) targets the digital technology sector.

Digital technology and business services continue to dominate foreign direct investments in Europe. To be precise, as in previous years, in 2019, digital technology and business services are in the top two in terms of the number of investments, attracting almost one in three foreign direct investments (31%). In addition, the two sectors create one in four new jobs (24%) in the European market.

The digital technology industry is such a dynamic sector that even the crisis of Covid-19 could not affect the investment activity that concerns it. Overall, the effects of the pandemic on economic activity varied considerably from sector to sector.

Sectors such as tourism and catering, transport, the automotive industry, construction and luxury goods have been hit hard, while other sectors, including digital services and e-commerce, have been affected little or not at all.

According to the EY Attractiveness Survey, which is based on data from the EY European Investment Monitor, the impact of the pandemic on the degree of investment in Europe varies considerably by industry and country. Thus, countries such as Ireland, Portugal and Poland, which mainly attract investments in modern service sectors such as shared service centers, research and development and software development centers, seem to be less affected. To be precise, the percentage of investment projects that proceed, despite the crisis, reaches 80%. In contrast, countries dominated by investment in traditional manufacturing and industry are expected to be hit hardest by the pandemic.

In 2019, France was, for the first time, in first place in terms of the number of investment projects (1,197), recording an increase of 17%, thus displacing the United Kingdom from the top of the relevant ranking. The uncertainty caused by Brexit partly explains this development, as, despite the shocks, foreign direct investment in the UK has risen by 5%.

In fact, foreign direct investment in France has been on a strong uptrend since 2017, due to labor and corporate tax reforms introduced by the Macron government.

A significant increase was also recorded by Portugal (+ 114%), which mainly attracts investments in the most modern service sectors, Spain (+ 55%) and the Netherlands (+ 11%), while the number of investments decreased in Turkey (-33%), Poland (-26%), Russia (-9%) and Ireland (-7%).

In Germany, foreign investment has remained at the same level, reflecting the structural difficulties faced by new entrants in recruiting staff and the fact that supply chains are already very well organized and integrated.

Top 20 countries in foreign direct investments in 2019:

  1. France
  2. United Kingdom
  3. Germany
  4. Spain
  5. Belgium
  6. Netherlands
  7. Poland
  8. Ireland
  9. Russia
  10.  Turkey
  11.  Portugal
  12.  Italy
  13.  Hungary
  14.  Serbia
  15.  Romania
  16.  Finland
  17.  Switzerland
  18.  Austria
  19.  Slovakia
  20.  Sweden

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Top 15 sectors of foreign direct investments for 2019:

  1. Digital Technology
  2. Business Services
  3. Transportation
  4. Machinery
  5. Financial Sector
  6. Agri- food Industry
  7. Transportation and logistics
  8. Chemical Industry
  9. IT and electronics Industry
  10.  Utilities
  11.  Metals Industry
  12.  Pharmaceutical Industry
  13.  Raw materials
  14.  Textile Industry, clothes
  15.  Research and scientific equipment

The digital technology sector had 41.025 new job openings in 2019 in Europe while the Business Services sector had 25.601 new job openings in 2019. At the same time the Transportation sector had 64.460 new job openings in 2019 in Europe. Furthermore, the Machinery sector had 16.512 new job openings in 2019 in Europe and the Financial Sector had 6.126 new job openings in 2019 in Europe. Lastly, the Agri- food industry had 11.392 new job openings in 2019 in Europe.

Top 20 countries To Invest In Or Do Business For 2020:

  1. Singapore
  2. United Kingdom
  3. Poland
  4. Indonesia
  5. India
  6. Australia
  7. Philippines
  8. United States
  9. Malaysia
  10. Czech Republic
  11. France
  12. United Arab Emirates
  13. Ireland
  14. Netherlands
  15. Finland
  16. Germany
  17. Sweden
  18. Oman
  19. Uruguay
  20. Bulgaria

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Top 20 countries For Investment In E-commerce And Digital Sector, 2020

  1. United States
  2. China
  3. Japan
  4. United Kingdom
  5. Germany
  6. India
  7. France
  8. South Korea
  9. Canada
  10. United Arab Emirates
  11. Taiwan
  12. Singapore
  13. Netherlands
  14. Brazil
  15. Russia
  16. Hong Kong
  17. Australia
  18. Denmark
  19. Switzerland
  20. Finland

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Maria Gourtsilidou
Maria Gourtsilidou is Senior Editor of Research and Data Analytics at the CEOWORLD magazine. She is responsible for driving thought leadership, using data analytics to showcase the company’s products and services, and fostering knowledge sharing between CEOWORLD magazine and client organizations. She studied Public Administration (Economics Of The Public Sector) in Greece and holds a Bachelor’s in Public Administration from the Panteion University of Political & Social Studies. Follow Maria Gourtsilidou on Twitter. Write at maria-gourtsilidou@ceoworld.biz.