2 presentation title - edit in the master slide emerging europe – “opportunities close to...
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2 Presentation title - edit in the Master slide
EMERGING EUROPE – “OPPORTUNITIES CLOSE TO
HOME”
A Strategic Opportunity for Black Country Business
Jonathan Allen
HM Ambassador to Bulgaria
22nd November 2013
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1. What is Emerging Europe?
A region stretching from Austria to Romania, from Poland to Croatia
110 million consumers A combined GDP of over £ 1 trillion Easy and inexpensive access – located
just 2-3 hours from the UK Potential to double exports by 2020 All EU regulated, part of the EU’s Single
Market Lower overall risk profile than emerging
markets further from the UK Proven market for UK businesses
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Average Annual GDP Growth Forecast (%)
2010-2020
2020-2030
2030-2040
CEE Average 4.7 4.2 3.8
Dev. World 1.8 1.8 1.9
Asia 5.8 5.1 4.7
Latin America 4.9 4.5 4.1
2. Sustainable Medium-term Growth... ...on a par with other emerging
economies
Source: HSBC The World in 2050
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3. Main Challenges
Outdated perceptions of the region among business in the UK
Bureaucracy
Transparency
Strong and increasing competition
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4. Doing Business in Emerging EuropeEase of Doing Business Corruption Perceptions
World Bank Ease of Doing Business Survey2013, rankings 1-185
Transparency International Corruption Perceptions Index 2012 – rankings from 1-174
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5. A Competitive Marketplace
The UK barely manages 3% of Emerging Europe’s total imports
We are lagging behind Germany, Italy and France
Poland Romania Czech Republic Hungary
1. Germany Germany Germany Germany
2. Russia Italy China Russia
3. The Netherlands Hungary Poland China
4. Italy France Slovakia Austria
UK? 19th 11th 29th 14th
Source: CIA Fact book
Source of Imports - 2011
Disappointing…but a real opportunity!.
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6. Emerging Europe Energy Energy sector less affected by downturn
Seven out of the top ten companies are energy and resource companies with revenue growth figures from 5% to 45% higher*
In ten years energy consumption grew by 10% in the region, and is expected to increase even further – 30% growth in demand by 2030 compared to the OECD average of 4%**
Countries are upgrading existing facilities, diversifying their overall energy mix and modernising grids
The region is a significant recipient of EU funding
The modernisation of the energy sector in the nine markets of Emerging Europe is the single largest
opportunity in the region for UK business.*Deloitte Central Europe Top 500 report, ** BP Energy Outlook
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7. British Success Stories
*Deloitte Central Europe Top 500 report, ** BP Energy Outlook
• Extracting natural gas in the Black Sea
• EUR 140 million invested since 1998
• 15% of Bulgaria’s natural gas consumption
• 60% of $189 million gas production revenues in 2011
• High level and sustained support from FCO/UKTI/Embassy (Kavarna East production concession August 2012)
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8. British Success Stories
*Deloitte Central Europe Top 500 report, ** BP Energy Outlook
William Hughes Ltd
• Wire form and spring making for aerospace and automotive
• Factory near Plovdiv since 2003
• Complementary UK & Bulgarian production facilities (more strings to the bow/better chance of winning contracts)
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9. Driving Growth in Emerging Europe The region is underexploited by UK firms.
If we matched the trading performance of our main European competitors, an additional £30 billion could be added to the UK’s GDP
Our regional sector specialists mean one point of entry for the nine countries
Write to us at [email protected]
Or visit the Emerging Europe landing page on UKTI’s website
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10. Emerging Europe Mega-Mission
Thank you for listening.
Save the Date: 3rd to 7th of March 2014 Be a part of the GREAT Emerging Europe Trade Show 5 Cities in 5 Days For more information email: [email protected]