European production capacity will increase after the emergency

By: Trademagazin editor Date: 2020. 06. 18. 11:05

Europe will lose its investment attractiveness as a result of the crisis, but local production capacity will increase, according to the EY European Attractiveness Survey, which involves more than 600 international decision-makers. Based on last year’s report on job-creating investments, companies are making their future investments dependent on each country’s economic stimulus packages and technological readiness.

Following the health emergency, the share of working capital investment in Europe is expected to decline, according to almost half of decision-makers (49 percent). Nine out of ten companies would hold back or postpone their transactions, but most of them (51 percent) only plan for a short time or to a small extent, according to EY research. Only 15 percent of respondents expect a large decline in willingness to invest.