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2024-04-12 00:00:00
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Central and Eastern Europe (CEE) is rapidly emerging as a prime "Made in Europe" center for global commerce in the 21st century. This region offers a blend of strategic benefits for businesses, including more affordable costs and superior prospects for greenfield ventures compared to its Western European counterparts.
The landscape of global business is undergoing a significant transformation. The era of lean, "just-in-time" supply chains, vulnerable to various disruptions, appears to be shifting. Businesses worldwide are adapting to a new reality, prompted by a confluence of challenges such as the COVID-19 pandemic, geopolitical tensions, and a move towards sustainability, underscored by ESG (Environmental, Social, and Governance) standards. This adaptation involves rethinking production and supply chain strategies, notably through nearshoring, to better serve the European market with its vast consumer base of nearly 450 million people.
CEE emerges as a compelling choice for investors, especially those in technology-driven and knowledge-intensive sectors. The region's foundational strengths—such as a strategic geographic position, a highly skilled workforce, well-developed infrastructure, and cost efficiency—have attracted a diverse array of international businesses looking to mitigate risks and secure their supply chains closer to European consumers.
Despite the current geopolitical and economic uncertainties, the CEE region showcases enduring resilience and promising growth prospects relative to Western Europe. It presents a wealth of opportunities for investors, highlighted by above-average GDP growth, increased domestic spending, rapid e-commerce expansion, and capital cities burgeoning with global talent.
Key Advantages of Investing in CEE Include:
- A pro-business climate featuring lower taxes and labor costs than found in Western Europe.
- Projected GDP growth rates from 2024 to 2028 that are expected to outpace the EU-27 average by double.
- Substantial European Union investment in infrastructure (such as roads, railways, airports, and waterways) enhancing regional connectivity and economic development.
- A dynamic manufacturing sector characterized by increasing sophistication and a focus on innovation, digital transformation, and high-value, knowledge-based activities.
- An upward trend in domestic consumption and e-commerce growth exceeding Western European rates.
- A competitive, skilled labor force spanning all education levels, backed by top-tier universities driving research and development and the proliferation of high-tech industries.
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