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CEE: THE “MADE IN EUROPE”
HOTSPOT FOR GLOBAL BUSINESS

#CEE #Research #Nearshoring #CTP

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Central and Eastern Europe (“CEE”) is well positioned to become the “Made in Europe” hub for the 21st century. The region’s business-smart advantages include lower costs and better opportunities for greenfield developments than in Western Europe.

 

Global business is changing for good. Gone, it seems, are the days of “just-in-time” deliveries with stretched-thin global supply lines vulnerable to external shocks. In response to the recent and still ongoing “perfect storm” of such shocks–the pandemic, the Russia-Ukraine and Israel-Gaza conflicts, and the accelerating shift to a green economy driven by ESG disclosure requirements–global business is changing the way it does business, with the focus on nearshoring production and supply-chain activities to be close to end customers.Europe, with its nearly 450 million consumers, is not surprisingly a target for new investments. Within Europe, the CEE region stands out as the hotspot for investors seeking to leverage its business-smart advantages, particularly in tech-intensive and knowledge-based industries. The fundamentals that have made CEE successful since the start of the millennium–strategic location, skilled labour, developed infrastructure and cost-effectiveness–are attracting a new wave of companies from around the world seeking to implement nearshoring strategies to de-risk production and supply for European consumers.

In the face of ongoing geopolitical headwinds and macroeconomic instabilities, CEE economies continue to demonstrate their resilience and favourable growth potential in comparison with Western Europe. The region offers numerous opportunities for investors, with GDP growth performance above the European Union average, rising domestic consumption, the expansion of e-commerce sales at faster rates than in Western Europe, and growing capital cities that attract global talent.

Key takeaway advantages of doing business in CEE

  • A business-friendly environment, with lower tax rates and employment costs than Western Europe;
  • GDP growth rates that have surpassed those of Western Europe and in 2024–2028 are forecast to grow twice as fast as the EU-27;
  • Significant and ongoing EU inflows for infrastructure investments (road, rail, air, water), which will further boost market connectivity and economic growth;
  • A robust manufacturing base with increasing complexity and diversity of local economies focused on innovation, digital transformation and knowledge-based, added-value activities;
  • Rising domestic consumption and higher growth of e-commerce sales than in Western Europe;
  • A skilled, cost-effective workforce at all levels of education, with world-class universities that support R&D and the growth of high-tech business ecosystems.

 

 

 

 

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