East-European markets Markets in Eeastern Europe are still marketable for foreign capital

Posted on 21/07/2020 8:27am

Tons of investors resolutely think about investing in East-European markets. Clearly, it may be risky to make such general statement about all markets in the region. For instance, investing in Poland still is much more popular than investing in Ukraine, because of a well-known political situation.

industry
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Nonetheless, it is easily visible in many data as well as varous analysis that foreign investments in this part of Europe remains growing. Nowadays, many firms open their offices and affiliates in Eastern Europe. There are some factors which may be listed as main results of this situation.



Firstly, the economy of these countries are continuously growing. It means that its citizens becomes more and more well-to-do. Certainly, it attracts new businesses and investments as people can spend more money on their consumption. It is widely known economic law (read more Anti-counterfeiting) that whenever society becomes richer, new investments come. Certainly, if there is no limits decreed by the government.

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And this is how we reach the second important factor that is: incentives for investment. Plenty of countries decide to create and implement different investment incentives schemes. They are designed specifically to encourage foreign investors to come to the country. These incentives may have different forms. A lot of depends on a specific plan designed and implemented by government of a particular country.

Poland, city Warsaw
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Sometimes, it might be an incentive for a concrete industry, or even for a specific region. In the second option, it frequently aims to develop least developed regions of the country. A good of such investment incentives may be the idea of creating industrial parks. Such idea is rather common in the region of Eastern Europe. They are usually created in a special regions which have the highest potential for industrial development. What is important is that the area is conveniently connected with other areas and cities by roads, airports and railroads. For example, industrial park in Poland often can offer good business infrastructure connecting not only other Polish towns, but also with neighbouring countries such as Belarus and Ukraine.

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