The improvement of France’s attractivity in 2017 and early 2018 is remarkable. After ten years of disappointing results, France is once again one of the top countries for foreign investments.
With over 1000 investment projects last year, the country is closely behind its historic competitors: the United Kingdom and Germany. Growth, industry, innovation and startups… EY’s 17th barometer on France’s attractivity details the reasons why the country has made a giant leap forward.
France is #1 for industrial attractivity
France’s and Europe’s economic situations have improved and have thus attracted foreign investments. The number of foreign investments has gone up by 31% in comparison with year 2016.
France is now the most attractive European country for industry. Aeronautics, automobile and luxury, are emblematic sectors of French industry which attract foreign investors the most.
With 323 new projects in 2017, industrial investments have gone up 52% in the course of a year.
An innovative start-up nation
35% of foreign investors consider innovation as France’s main asset. 30% mention the French recruiting ground, 30% its international touristic exposure.
56% of surveyed investors think the French policy in favour of start-up creation is efficient or very efficient. The government initiatives for entreneurship, among which the French Tech attract start-upers who launch their businesses locally or transfer them to France after a creation abroad.
EY has asked managers which European city they considered the most attractive: 37% of them answered Paris. The French capital is now placing before London, for the first time.
It does seem that the upcoming Brexit tips the scales in favour of France, seen as a more attractive place than London to settle European headquarters.
The attractivity of France has never been higher in the last ten years. The country must make up for lost time in comparison with its neighbours Germany and the UK, says EY.
The audit firm identified areas of improvement: helping foreign investors create more jobs to meet the German and British levels, finding new competitiveness levers related to taxes, job market flexibilities and administrative simplification, and attracting more R&D centers.
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