Russia among Top 10 countries attractive for investors
For the first time, Russia was ranked among the 10 most attractive investment destinations worldwide. It is 9 positions up from its last year's rating feeling confident on the 8th place.
Oct 03, 2003
For the first time, Russia was ranked among the 10 most attractive investment destinations worldwide. It is 9 positions up from its last year's rating feeling confident on the 8th place.
Roughly one in five global executives and more than 25 percent of North American and European investors have a more positive outlook on Russia than one year ago. Russia is likely to have been driven in part by macroeconomic stability and tax reform, as well as by resurgence in extractive industry interest.
As for the winner of the race, it is China that is the most attractive country for foreign investments. Despite the temporary interruption from the outbreak of SARS earlier this year, investor confidence in China has continued to grow. Nearly one third of respondents have a more positive view of China than one year ago.
The US remains the second most preferred destination for foreign direct investments. However, experts pointed to a decline in US attractiveness for investments. Investors viewed depreciation of the dollar as the most critical factor impacting US attractiveness, as well as an ongoing war on terror. Additionally, increased border controls and more stringent visa requirements could undermine commerce. Looking ahead, investors said the most important factor impacting US attractiveness will be economic recovery.
As for former communist countries, Poland reached an all time high, becoming the fourth most preferred investment destination worldwide, up from 11th place one year ago. Global executives said Poland and Russia will need to make significant economic adjustments and fine-tune investment policies to build broader investor appeal. Poland is already facing increasing competition from other low-cost European destinations and Russian foreign direct investments remain concentrated in the resource sector.
It is interesting that investors indicated a greater future likelihood to invest in emerging markets than in industrialized countries. For the first time since 1998, a majority of the top 10 destinations most attractive to corporate investors are emerging markets, including China, Mexico, Poland, India, Russia and Brazil. At the same time, four developed markets, i.e. France, Italy, Canada and Australia, dropped out of the top 10 most attractive FDI destinations this year.
The study was conducted by A.T. Kearney, a consulting company that calculates the Foreign Direct Investment Confidence Index based on a survey among global executives.
Roughly one in five global executives and more than 25 percent of North American and European investors have a more positive outlook on Russia than one year ago. Russia is likely to have been driven in part by macroeconomic stability and tax reform, as well as by resurgence in extractive industry interest.
As for the winner of the race, it is China that is the most attractive country for foreign investments. Despite the temporary interruption from the outbreak of SARS earlier this year, investor confidence in China has continued to grow. Nearly one third of respondents have a more positive view of China than one year ago.
The US remains the second most preferred destination for foreign direct investments. However, experts pointed to a decline in US attractiveness for investments. Investors viewed depreciation of the dollar as the most critical factor impacting US attractiveness, as well as an ongoing war on terror. Additionally, increased border controls and more stringent visa requirements could undermine commerce. Looking ahead, investors said the most important factor impacting US attractiveness will be economic recovery.
As for former communist countries, Poland reached an all time high, becoming the fourth most preferred investment destination worldwide, up from 11th place one year ago. Global executives said Poland and Russia will need to make significant economic adjustments and fine-tune investment policies to build broader investor appeal. Poland is already facing increasing competition from other low-cost European destinations and Russian foreign direct investments remain concentrated in the resource sector.
It is interesting that investors indicated a greater future likelihood to invest in emerging markets than in industrialized countries. For the first time since 1998, a majority of the top 10 destinations most attractive to corporate investors are emerging markets, including China, Mexico, Poland, India, Russia and Brazil. At the same time, four developed markets, i.e. France, Italy, Canada and Australia, dropped out of the top 10 most attractive FDI destinations this year.
The study was conducted by A.T. Kearney, a consulting company that calculates the Foreign Direct Investment Confidence Index based on a survey among global executives.