Transcript UKTIpptHMAJA

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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Presentation title - edit in the Master slide
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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2. Sustainable Medium-term Growth...
...on a par with other emerging economies
Average Annual GDP Growth Forecast (%)
20102020
20202030
20302040
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
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Outdated perceptions of the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 Europe
Ease of Doing Business
World Bank Ease of Doing Business Survey
2013, rankings 1-185
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Corruption Perceptions
Transparency International Corruption Perceptions
Index 2012 – rankings from 1-174
5. A Competitive Marketplace
Source of Imports - 2011

Romania
Czech
Republic
Hungary
1. Germany
Germany
Germany
Germany
2. Russia
Italy
China
Russia
Hungary
Poland
China
France
Slovakia
Austria
11th
29th
14th
Poland
3. The
Netherlands
4. Italy
UK? 19th

Source: CIA Fact book
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Disappointing…but a real opportunity!
.
The UK barely
manages 3% of
Emerging
Europe’s total
imports
We are lagging
behind Germany,
Italy and France
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
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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
7. British Success Stories
•
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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*Deloitte Central Europe Top 500 report, ** BP Energy Outlook
8. British Success Stories
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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*Deloitte Central Europe Top 500 report, ** BP Energy Outlook
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




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]
Thank you for listening.
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