Investors view Europe as short-term safe haven - China slips to third place
International investors view Western Europe as a familiar and reliable region in which to invest, but Eastern and Central Europe is considered a better medium-term prospect, according to a new report by consultants Ernst & Young. The investment community views Europe as more stable and relatively safer than the rapidly developing BRIC countries (Brazil, Russia, India and China), but the long-term trend suggests global capital projects will continue to shift from west to east and from north to south.
Western as well as Central and Eastern Europe are neck-and-neck as the "safest" regions, and China, which last year was in pole position as the most attractive region in which to establish operations, has slipped to third place. North America, India, Russia and Brazil are the next most attractive regions. However, when it comes to the most attractive regions for the next three years, Western Europe slips to fifth place. Top of the table is Central and Eastern Europe, followed by China, India and Russia. Looking at the bigger picture, investors expect the next Google or Microsoft to come from Shanghai or Mumbai rather than Paris or Berlin. China and India are best positioned to return to double-digit growth, according to the report, and China was rated second-highest among all regions for its ability to address the crisis.
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