Europe’s attractiveness as an investment destination has been on the rise since last year, and will increase post-Brexit, along with the UK.
According to Invest Europe’s Global Investment Decision Makers Survey 2018, 78% of investors expect increased investment in Europe over the next five years.
Following last year’s inaugural survey, global investors still rank Europe above China and the US for its highly skilled workforce, transport infrastructure and regulatory climate. They now perceive Europe to have moved ahead of the US as the leader on innovation and entrepreneurship, taxation levels and access to global markets.
However, Europe lags behind the US on IT infrastructure and level of economic growth.
“Global investors are increasingly looking towards Europe,” said Michael Collins, CEO, Invest Europe.
“The continent is now outshining China and the US in many areas, from its skilled workforce to its open markets and thriving innovation. While Europe isn’t immune to the political and social strain being felt around the world, if policymakers focus on regulatory stability, investment in innovation and better capital markets integration, Europe can be on top in the years to come.”
Nine out of ten investors from the US and China (both 91%) view Europe as more attractive than five years ago, up from approximately seven out of ten in last year’s survey (71% and 78% respectively). Around two in five investors from China (38%) say their view of Europe has improved because of a fall in the US’s attractiveness, more than the 25% of respondents overall who said the same.
Global investors are most likely to consider Europe a global leader in finance and insurance, energy and the environment, and biotech and healthcare, while those from China see Europe as a global leader in most of the sectors tested.
However, investor confidence in Europe’s political stability fell from 50% to 40% year-on-year, while social stability dropped from 50% to 39%. Europe’s perceived commitment to sustainability and the environment — an important issue for 80% of investors — has also fallen, from 74% to 50%.
Sabuhi Gard is an investment writer for Incisive Works
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