* CeeInd - Opportunities for Finnish Companies in Poland > Skanska to Modernize Railway in the Czech Republic > Compal Electronics to Establish Manufacturing Plant in Poland > SCM Announces the Launch of SCM Adria Subsidiary in Slovenia > Japan's Toppan Begins Construction on New Czech Republic Plant > Arburg Expands Footprint in South Eastern Europe with New Romanian Subsidiary > Josera to Hire 100 Employees for New Pet Food Factory in Poland > Žito Completes EUR 9 Million Renovation of Maribor Bakery > Valmet to Deliver New Production Line to Velvet CARE Paper Mill in Poland > Czech Pet Food Group Revamps Nordic-Inspired Dog Food Brand Packaging > Grove All-Terrain Crane Enhances Karmax Fleet in Poland > Maxcess Expands Manufacturing with New Facility in Poland > Onsemi Announces $2 Billion Expansion of Chip Production Facility in Czechia > Sinoboom to Manufacture MEWPs in Poland for European Market > EBRD Commits €25 Million to V4C Poland Plus Fund II > Nearshoring to Poland and Other CEE Countries: A Strategic Move for European Businesses > Koskisen Expands Kore Business in Poland with EUR 3 Million Investment > Onsemi Commits $2 Billion to Expand Czech Republic Semiconductor Facility > Crane ChemPharma & Energy Expands to Arad with New Lease in Industra Park > VW-Backed Gotion and InoBat to Establish EV Battery Plant in Slovakia > Wacker Chemie AG Begins Construction of New Silicone Production Facility in Czech Republic > ... CeeInd - ''The leading Industrial Portal dedicated to the Growth market of Central and Eastern Europe >LG Energy Solution Wrocław Marks 5 Years: Powering Poland's Lead in EU Electric Vehicle Battery Market > Outlook on Central Europe's Polymer Industry for 2024: A Review of the 2023 Landscape > Etron Technology Selects CTPark Oradea for New Romanian Production Facility: Expanding European Presence > Central and Eastern Europe: Emerging as a Key Player in the Global Supply Chain Transformation > TRILUX Group and Panattoni Break Ground on First Eco-Friendly Lighting Factory in Central and Eastern Europe > Hyundai Motor Co. Confirms Advancement of New Car Manufacturing Plant in Eastern Czech Republic, CTK Reports >Poland Emerges as Finland's 7th Largest Global Export Partner in 2023 > Prague Set to Transform Historic Strahov Stadium into a €400 Million Tech Hub > Walki Set to Boost Employment and Expand Eco-Friendly Packaging Production in Wrocław > Biovoima expands to Poland > Trasmec Group Expands with State-of-the-Art Romanian Production Facility: A Leader in Conveyor Systems Manufacturing > GLP Plans Major Expansion at Wrocław Logistics Hub, Strengthening Central Eastern Europe's Supply Chain Infrastructure > Expanding Telecom Frontiers: HFCL Launches New Optical Fiber Cable Plant in Poland to Power Growth in Central Eastern Europe > Shanghai Unison Aluminium Invests €35 Million in New Bulgarian Automotive Plant Near Plovdiv > Rail Cargo Group Expands European Network with New Routes to Germany and Turkey via Romania > Nestlé Purina Enhances Pet Food Manufacturing in Hungary with Significant Investment > Estonia: Billion-Euro Green Methanol Plant in Pärnu: Power2X's Investment Sparks Poland Emerges as Finland's 7th Largest Global Export Partner in 2023 > Sustainable Energy Revolution > Borealis Expands Recycling Capacity with Acquisition of Bulgarian Specialist Integra Plastics > The Polish Construction Market Sees Notable Growth in Early 2024 > MR DIY Set to Launch Its Entry into the Polish Market with New Logistics Hub in Central Europe > Romania Boosts Recycling Industry with €200 Million in Grants Scheduled for May > Ussuri Capital to Launch Advanced Steel Manufacturing Facility in Romania with a Focus on Low-Carbon Production > Incap Slovakia Enhances Electronics Manufacturing with Advanced Machinery in CEE > Atlantic Stark Announces Factory Expansion in Belgrade: Boosting Confectionery Production and Growth in CEE > Kumho Tire Targets European Expansion with $750 Million Investment for New Plant > Vestas Announces Strategic Expansion with Second Offshore Wind Factory in Poland for 2026 > Mondi Boosts Slitting Capabilities in Slovakia, Strengthening CEE Product Range > Nokian Tyres investment in Romania to help support growth in CEE Market > Maxcess's New Operational Hub in Łubowo, Poland Elevates Manufacturing and Sustainability in Central Europe > Thimm Allocates €10m for Enhanced Operational Efficiency and Production in Poland > POSCO International Launches EV Parts Factory in Poland: A Strategic Move for Green Mobility and Investment Surge in CEE > ZF Inaugurates Pioneering Zero-Emission Manufacturing Hub in Klášterec, Czech Republic > Nexen Tire Gears Up for Major Expansion in Czech Plant, Eyes Production Boost > Expanding Horizons: Samsung SDI Boosts CEE Presence with Third Factory in Hungary for Advanced EV Batteries > Finland's Renta Group Expands into Polish Market with Acquisition of Scaffolding Group > 3 different 2024 Economic Growth Predictions for Poland > Windar Renovables Announces EUR 70 Million Investment in New Polish Factory for Wind Energy Infrastructure > Northvolt Expands in Gdańsk with New Business Scaling and R&D Centers > Polish Government Awards Aira EUR 15M for Advanced Manufacturing Facility > Drutex Launches EUR 183M Project for Second Manufacturing Plant Expansion > Cemex Launches Revamped Concrete Facility in Czech Republic > LDZ Cargo Advances in Baltic Region with Expansions in Estonia and Lithuania > Poland: InvestEU - EIB supports Protix in scaling up its sustainable protein production > Poland Boosts SME Support with EIB Group and Europejski Fundusz Leasingowy Partnership > Bulgaria's Agria Group Secures €35 Million EIB Loan for Eco-Friendly Sunflower Oil Plant > BMW's New Hungarian Facility Advancing Smoothly, Minister Szijjártó Discusses Progress > Oonly Launches Innovative Bottling Facility with Groundbreaking refPET Technology > Taiwan CEE Credit Fund supports Inventec to expand in Czech > Poland's Top Construction Firms Achieve Record Revenues in 2023 Amid Industry Challenges and Growth Opportunities > EBRD and EU support frozen pastry producer in Georgia > Hellweg Expands to Poland with Flexal Group Partnership, Capitalizing on Rising Demand in Plastic Recycling Machinery > IMA Schelling Boosts Automation Offerings with Key Acquisitions of Carmet Automazioni and Blumenbecker Engineering > Romanian PVC Manufacturer Barrier Announces New EUR 2M Factory Launch to Accelerate Global Expansion > Audi Hungaria Sets New Production Record in 2023, Surpassing Decade Milestone at Győr Plant > Voith Revamps Schumacher Packaging’s PM 2 Line in Myszków, Poland, Setting New Standards in Sustainable Production > SCM Launches New Subsidiary in Slovenia, Strengthening Market Presence in the Balkans > Czech company Plastigram to invest 8M EUR in Poland > EBRD and Raiffeisen Bank Enhance MSME Financing in Kosovo with Innovative €20 Million Guarantee Program > Taiwan and Czech Republic Sign MOU to Boost Economic and Cultural Cooperation > Mr. DIY Partners with CEE Countries for Expansion into Central and Eastern Europe > EBRD Partners with Eurowatt for Expansion of Wind Energy Projects in Poland > India and Czech Republic Forge Strategic Innovation Partnership for Growth in Central Europe > Korean tyres at CTP Czech > Taiwan and Poland Enhance Bilateral Ties: Economic, Cultural, and Technological Cooperation on the Rise > Viking Johnson distributors in CEE > danish Shape Robotics Acquires Polish Tech Firm Skriware to Enhance STEAM Education Offerings > Pulse Roll Label Products Expands European Operations with New Factory Opening in Poznań, Poland > Polar Night Software Partners with Renta Suomi to Develop Innovative Applications in the Baltic Region > Sandvik Names Volvo as Official Distributor of Mobile Equipment in Poland > PepsiCo invests $13m in soft drinks line in Romania > Rohlig SUUS Logistics Establishes Its Premiere Storage Facility in Slovakia > Budimex of Poland Spearheads Construction of €3.7 Billion High-Speed Rail in Latvia > Inteva, a Leading Global Automotive Supplier, Inaugurates Advanced Production Center in Czech Republic > UPM’s WISA plywood products distributors and dealers in CEE > EBRD Provides RON 400 Million Loan to Delgaz Grid in Romania for Energy Development > Balluff Enhances Logistics Operations with Consolidated Warehousing in Hungary > Poland Secures €5 Billion in Loans from European Investment Bank > Wood Stove to Eco-Friendly Heating System funding for CEE from the EBRD > Bunzl plc, a Global Specialist in Distribution and Services, Expands into Poland and Strengthens Presence in the Netherlands > Hirsch Servo Expands with Czech Injection Moulding Firm Renostav Acquisition > BYD Expands into Europe with New Automotive Plant in Hungary > Logicor Initiates Its Maiden Logistics Park Project in Czech Republic > EBRD's €25 Million Investment in Pelion Group Boosts Growth in Pharmaceutical Distribution in Poland and Baltic States. > Jacobs Douwe Egberts to Build €140 Million State-of-the-Art Coffee Plant in Jawor, Poland > CAREL Announces Expansion with New State-of-the-Art Plant in Labin, Croatia > Hengst Filtration Purchases Former IAC Site Near Ford Plant in Romania for Air Filter Production > Umicore and PowerCo's €1.7 Billion Joint Venture: Pioneering CAM Production Plant in Poland's Wałbrzych Economic Zone > EBRD Grants €15M to ECSO for Eco-Friendly Plastic Recycling in Lithuania > JLR Announces Plan to Shift EV Production to its Nitra Plant in Slovakia by 2030 > Logicor Initiates Its Maiden Logistics Park Project in Czech Republic > Poland Leads EU in Candle Exports: Dominating the European Market in 2022 > EBRD and Italy Boost Moldova's MSMEs with Strategic Financial Support > Molex Expands Polish Operations with Third Advanced Manufacturing Campus in Katowice > SoftServe Expands into Romania with New Bucharest Headquarters and Significant Employee Growth modify >
Limba
Căutare A-Z
ABCDEFG
HIJKLMN
OPQRSTU
VWXYZ0-9
Căutare:
Menu

Follow ceeind on Twitter

Tecnolegno s.r.l.

C. Otto Gehrckens

Raute Oy

Maschinenfabrik Berthold Hermle AG



TRAUB DREHMASCHINEN GmbH

Soco System GmbH


Opportunities for Doing Business in Central and Eastern Europe (CEE): Prospects for Emerging Economies
2024-08-19 00:00:00

The emerging economies of Central and Eastern Europe (CEE) are poised to become a new epicenter of economic growth within the European Union. As industrial activity surges and foreign direct investment (FDI) flows into the region, the economic convergence of CEE with Western Europe is set to accelerate, offering substantial business opportunities.

Prospects for Growth in CEE

The economic outlook for CEE countries is notably optimistic. According to analysts from Focus Economics, GDP growth in the region is forecasted at 0.8% for this year, with a more robust 2.8% expected in 2024—nearly triple the growth rate projected for the Eurozone (1.1%). Among the CEE countries, Poland, Romania, and Hungary are expected to lead the charge with rapid economic expansion. These nations have successfully navigated the challenges of the COVID-19 pandemic and the ongoing energy crisis. For instance, Poland’s GDP has grown by an impressive 10.8% since the fourth quarter of 2019, making it the second fastest-growing economy in the EU after Ireland. Romania and Hungary have also outperformed, with growth rates of 7.5% and 5%, respectively, surpassing the EU median.

In contrast, countries like Slovakia and the Baltic States have experienced more modest growth, roughly 3% since the pandemic—comparable to the performance of Western economies like the Netherlands and Italy. Czechia remains the weakest performer in the CEE, struggling to recover from the pandemic, with a forecasted recession in 2023 and slower growth anticipated for 2024.

Industrial Growth and Investment Opportunities

The economic strength of leading CEE countries can be attributed to a significant increase in industrial activity. Strong foreign demand and investment have fueled this surge, compensating for slower domestic consumption growth. Since 2015, industrial production in Poland has soared by over 51%, followed by a 20% increase in Hungary and nearly 10% in Czechia. In contrast, Germany, Europe’s manufacturing powerhouse, has seen relatively flat industrial production over the past seven years.

This industrial growth in CEE is closely linked to advancements in supply chains, particularly in high-tech manufacturing sectors. Poland has emerged as a global leader in electric vehicle battery production, ranking fifth worldwide with exports valued at EUR 6.5 billion in 2021. The region is also seeing increased investment in electronic components and the heat pump industry, further bolstering its industrial output.

Despite the ongoing energy crisis, CEE’s industrial expansion is expected to continue, driven by reshoring trends. Surveys by Maersk and Reuters rank Poland as the second most popular destination for industrial plants in the EU, after Germany. Poland is also the top choice for European companies looking to reshore operations. This is reflected in the economic data, with Poland receiving FDI inflows exceeding 5% of GDP in 2022, nearly double the historical average. Other CEE countries, while showing slower progress, remain attractive investment destinations due to their proximity to key markets and favorable business conditions.

Military Spending and Energy Transition

Military spending is another factor supporting industrial capacity in CEE. Poland’s military expenditure, at 4% of GDP, is the highest in NATO, which could facilitate technology transfer and attract additional US-based investment. However, this also contributes to a higher budget deficit, which analysts expect to exceed the EU’s Excessive Deficit Procedure threshold in the coming years.

CEE countries are also positioning themselves to benefit from the energy transition. Poland and the Baltic States are expanding their maritime infrastructure for LNG and oil imports, reducing the EU’s reliance on Russian energy. Poland’s Gdańsk oil terminal already supplies neighboring countries, and the nation has seen significant growth in solar energy installations, supported by subsidies and strong household demand. Additionally, Poland is advancing its nuclear energy plans, with large-scale plants and small modular reactors in the pipeline. Hungary, too, is extending the use of its nuclear plant in Paks and focusing on renewable energy development. These initiatives present lucrative investment opportunities, particularly in sectors requiring external expertise.

Addressing Labour Market Challenges

One of the challenges facing the CEE region is a labor shortage, particularly in Czechia and Poland, where unemployment rates are among the lowest in the EU (2.7%). Companies in these countries are struggling to find both skilled and unskilled workers, as highlighted by the European Commission’s monthly business survey.

Several trends could help mitigate this issue. Labour market participation rates have been increasing, with more people becoming economically active. In Czechia, the activity rate has risen from 74% to 77% since 2015, while in Poland, it has increased from 67% to 73%. This trend is expected to continue, driven by longer healthy life expectancy and the growth of cognitive jobs.

Additionally, there is significant potential to increase productivity through digitization. The International Federation of Robotics notes that the density of robots in Poland is below the global average, suggesting opportunities for increased automation. Czechia, while slightly ahead in robot density, also has room for further digital adoption. Investments in automation and digitization could help alleviate labor shortages and boost productivity across the region.

To address the labor shortage, CEE governments have introduced measures to attract immigrants, particularly from Ukraine. Since the onset of the conflict in Ukraine, over a million people have arrived in Poland, with nearly 500,000 settling in Czechia. These governments have made efforts to integrate these individuals into the labor market, with many Ukrainians establishing small businesses in Poland, contributing to the local economy’s diversity and dynamism.

Inflation and Economic Stability

The tight labor markets in CEE countries are contributing to wage-led inflation. While inflation peaked in February, it remains a concern, especially in Hungary, where the Consumer Price Index (CPI) is still rising by 20% year-on-year as of May. In Poland, Czechia, and Slovakia, inflation hovers around 13-14%, and slightly over 11% in Romania. Analysts expect average inflation in CEE to be 11.7% in 2023 and 5% in 2024, though rates will vary by country.

Czechia is expected to experience the fastest decline in inflation in 2024, thanks to fiscal austerity measures and significant reductions in real income in 2022. In contrast, Slovakia, Poland, and Hungary have adopted more lenient approaches to the energy crisis, supporting households with financial aid and proposing generous minimum wage increases. While this approach supports economic growth, it also prolongs inflationary pressures, with CPI inflation in Poland and Hungary expected to be 3 percentage points higher than in Czechia in 2024.

Conclusion

Economic growth in CEE remains resilient despite global challenges. These economies exhibit significant growth potential with relatively few imbalances, supported by moderate levels of private and public debt and robust labor markets. While inflation remains a concern, CEE continues to be an attractive and promising region for investment.

Leverage CeeInd.com for Business Success in CEE

For businesses looking to tap into the thriving industrial markets of CEE, CeeInd.com is your gateway to success. Our platform specializes in helping companies market their industrial products, machinery, equipment, and services to key stakeholders in Central and Eastern Europe. With CeeInd.com, you can showcase your offerings to a targeted audience, increase visibility in this high-potential region, and seize the opportunities that CEE’s dynamic economies present.

Visit CeeInd.com to learn more about how we can help you grow your business in Central and Eastern Europe.