If you are planning to invest in Central and Eastern Europe you should know that it is an excellent choice for your business.
When many emerging and developed markets face strained economic and political developments, it seems that the core CEE looks comparatively much better. As the McKinsey & Company states “since the transition to a market economy almost three decades ago, CEE has enjoyed a golden age of growth. The ten CEE countries examined in this report—Bulgaria, Croatia, the Czech Republic, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, and Slovenia — recorded on average a 114 percent increase in GDP per capita between 1996 and 2017, compared with an increase of just 27 percent in the European Union’s “Big Five” economies: France, Germany, Italy, Spain, and the United Kingdom.1 The CEE region has become one of the most attractive places to invest in globally. This has enabled CEE countries to partially close the economic gap with Western Europe and their populations to enjoy a significant rise in living standards.” What’s interesting, with a 4.2% GDP growth in 2019, Poland is the country that ranks as the second fastest-growing economy in the EU, according to the European Commission. As the Deloitte report confirms (Investing in central Europe) Poland is also one of the best performing transition markets in the world!
Why is it worth to invest in Central Eastern Europe?
According to Deloitte report “the CEE region within the EU offers relatively low labor costs, a favorable tax environment, and availability of tax incentives and since spring 2013 solid GDP growth trends across most of the economic sectors”. When the Eurozone grows by an extra 1%, then the CEE region grows by an extra 1.3%, which makes it very attractive for investing!
Global pork production market development forecast
As the Rabobank report confirms (Pork Quarterly Q3 2019) besides the ASF presence in Europe “export have increased from most member states, mainly driven by stronger demand from China”. This trend is also noticeable worldwide. In Brazil for instance “exports move to new highs” and in the USA (thanks to the resolution of trade terms with Mexico and Canada) export should boost significantly. This topic will be discussed during Eastern European Pig Congress (31.01.2020, MCC MAZURKAS, Ożarów Mazowiecki, Poland).
Pig production market overview for CEE
According to “EU agricultural markets short-term outlook – Spring 2019” report, EU pigmeat production is expected to remain stable in 2019, despite lower herd so far.
The surge of pigmeat demand from China (due to the spread of African Swine Fever in this country) will push EU exports (+12%) and prices up in 2019. Production growth should pick up in 2020 (+1.4%) as Chinese demand continues.
Market developments in the EU