Romania, Ukraine Most Targeted By Investors In CEE – Survey

Of the respondents, 14% said are interested to invest in Romania, and a similar number eye investments in Ukraine, according to the poll of Thomson Reuters and OeKB Central and Eastern Europe Business Climate Index.

The following two spots were occupied by Bulgaria with 10% and Russia with 8%.

In addition to new investors targeting Romania, Ukraine, Bulgaria and Russia, investors already present in the four countries plan to extend their existing business operations.

Investor sentiment remains optimistic for central and eastern Europe despite ongoing global turmoil, according to the approximately 400 international companies polled.

"Respondents believe there is only a slight risk that the current unrest in global financial markets will have a damaging effect on the Central and Eastern Europe economy. Although the proportion of optimistic assessments has fallen since January, the survey’s economic and business indicators remain in positive territory. Forty-three percent of those interviewed still expect the economic situation to improve across the region, compared to 9% who think it will deteriorate,” the survey noted.

Responses reflect investors’ plans to build on their existing investments, albeit to a lesser extent that the previous survey.

In the coming months, around 140 new investment projects are due to be implemented in the region.

Compared to the other countries surveyed, investor responses indicated that Croatia’s business climate has deteriorated the most since the beginning of the year.

The survey also indicates that business in the Central and Eastern Europe insurance industry is going particularly well and prospects for the upcoming six months are encouraging.

The survey results for the banking industry revealed a more cautious outlook, as the survey returned lower business expectations for the sector than in Jan 2008, not necessarily due to local conditions, but rather more to increased general uncertainty and the banks’ higher risk awareness in the current financial crisis.