East-European markets Markets in Eeastern Europe remains favourable for foreign investments

Posted on 02/09/2019 7:18am

Many investors seriously think about investing in East-European markets. Obviously, it may be risky to make such general statement about all markets in the region. E.g., investing in Poland still remains a lot more attractive than investing in Ukraine, because of a well-known political situation.


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Nonetheless, it is easily visible in plenty of data and varous analysis that foreign investments in that part of Europe are constantly growing. Presently, tons of enterprises are opening their offices or subsidiaries in East-European markets. There are some factors which might be listed as main results of this situation.

To begin with, the economy of those countries are still growing. That means that its citizens becomes more and more rich.

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Apparently, it attracts new firms and investments as individuals may spend much more on new products. It is well known economic fact that when society becomes richer, new investments show up. Surely, if there is no restraints decreed by the government.

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And here we reach the second crucial factor that is: incentives for investment. Many governments decide to develop and implement different investment incentives schemes. They are designed with the purpose to encourage foreign investments in the country. These incentives might have various forms. Everything depends on a specific scheme created and implemented by government of a particular country.


Poland, city Warsaw
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Frequently, it may be an incentive for a specific industry, or even for a specific region. In the second case, it usually aims to develop the poorest regions of the country. A good of such investment incentives may be the idea of developing industrial parks. Such initiative is very common in the region of Eastern Europe. They are frequently created in a special areas which have the highest possibility of industrial development. What is relevant is that the area is well connected with other areas and cities by roads, ports and railroads. E.g., industrial park in Poland often could offer well-developed business infrastructure connecting not just other Polish towns, but also with neighbouring countries such as Belarus and Ukraine.

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Tags: region, market, industry, investors, East Europe