An Introduction to Emerging Europe: Emerging Market Opportunities on - PowerPoint PPT Presentation

An Introduction to Emerging Europe: Emerging Market Opportunities on the UK’s Doorstep Jonathan Knott, HM Ambassador Budapest 1

Why Emerging Europe? 2

110 million consumers 3

Sustainable medium-term growth, on a par with other Emerging economies Average annual GDP growth forecast (%) 2010-2020 2020-2030 2030-2040 CEE Average 4.7 4.2 3.8 Dev. World 1.8 1.8 1.9 Asia 5.8 5.1 4.7 Lat. Am 4.9 4.5 4.1 Source: HSBC The World in 2050 4

Disposable income set to increase substantially GDP per capita Av. Annual growth forecast Real USD 2010-2020 2020-2030 CEE average 7000 5.2% 4.8% Dev. World 27200 1.7% 2.0% Asia 4220 4.8% 4.6% Lat. Am 4228 3.3% 3.6% Source: HSBC The World in 2050 5

Easy and inexpensive to access, low risk and English widely spoken Expedia Flight costs and flight times: first week of June 2013 Gatwick-Prague £139 2 hrs Gatwick-Budapest £152 2 hrs 25 mins Luton-Warsaw £125 2 hrs 25 mins Heathrow-Sao Paolo £801 14 hrs 50 mins Heathrow-Beijing £561 11 hrs 40 mins 6

A proven market for UK business UK exports of goods (£ million) 2001 2011 % increase 2001-11 Poland 1297 4338 234% Czech Rep 1078 1921 78% Slovakia 201 552 175% Romania 343 952 177% Bulgaria 120 328 173% Hungary 616 1186 92% CEN 5125 11368 122% 7

Bilateral Trade 8

UK exports to Emerging Europe increased by £2 billion in 2011: on a par with increases to China, India and Russia Total UK exports goods & services 2011(£ million) 2010 Emerging Europe 15959 13780 China 12530 10332 India 8332 6208 Russia 7286 5285 Turkey 5203 4429 Brazil 3695 3134 9

UK food & drink exports to Emerging Europe in 2012 Poland was the UK’s 11 th biggest food & non-alcoholic drink  market, with exports worth £183 million.  Exports to Emerging Europe as a whole were worth £389 million.  We increased food & non-alcoholic drink exports to the established markets of Czech Republic (+6.2%) and Austria (+12.6%)  We increased food & non-alcoholic drink exports to the growing markets of Bulgaria (+52.6%) and Slovenia (+47.6%) 10

Exports continue to grow in 2013 Increase in UK exports over January-March 2013 (year on year)  Dairy products and eggs : Romania (+280%); Bulgaria (+135%); Hungary (+107%); Czech Rep. (+93%); Austria (+53%).  Meat & meat preparations : Bulgaria (+1700%); Czech Rep. (+30%).  Vegetables & fruit : Romania (+359%); Bulgaria (+262%); Austria (+50%).  Fish & seafood : Slovakia (+611%); Romania (+253%); Bulgaria (+164%); Czech Rep. (+29%).  Beverages : Bulgaria (+80%); Austria (+66%); Slovakia (+50%); Czech Rep. (+30%); Poland (+10%).  Coffee, Tea, Cocoa & Spices : Romania (+87%); Bulgaria (+12%); Poland (+8%). 11

Our main challenges  Outdated perceptions of the region among business in the UK  Transparency  Bureaucracy  Strong and increasing competition 12

Ease of Doing Business ranking: 2013  Austria 29 China 91  Slovenia 35 Russia 112  Slovakia 46 Brazil 130  Hungary 54 India 132  Poland 55  Czech Rep 65  Bulgaria 66  Romania 72  Croatia 84 World Bank Ease of Doing Business survey 2013, rankings 1-185 13

Corruption Perceptions Index: 2012  Austria 25 China 80  Slovenia 37 Brazil 69  Poland 41 India 94  Hungary 46 Mexico 105  Czech Rep 54 Russia 133  Croatia 62  Slovakia 62  Romania 66  Bulgaria 75 Transparency International Corruption Perceptions Index 2012 – rankings from 1-174 14

A competitive marketplace Source of imports 2011 Poland: Germany 28.7% Russia 10.3% Netherlands 5.9% Italy 5.3% China 5.3% France 4.4% Czech Rep 4.3% Romania: Germany 17.2% Italy 11.4% Hungary 8.8% France 5.8% China 4.6% Kazakhstan 4.2% Austria 4% Source: CIA Fact book 15

CEN: driving growth in Emerging Europe  60 UKTI staff across the CEE focused on trade development. Full range of UKTI support services.  Emerging Europe GREAT Campaign: 5 markets and £1 million strategic sector promotion.  New British Business Centres in Poland and Romania to be launched this year.  One Stop Shop access to the region: Food & Drink sector led from Prague ( svatava.majkova@fco.gov.uk ). 16

Forthcoming activities supporting food & drink exports to Emerging Europe  22-25 August 2013: UK pavilion at the Agrocomplex Expo International Agriculture & Food Exhibition in Nitra, Slovakia.  7-8 September 2013: UK pavilion at the Foodparade festival in Prague.  November 2013 TBC: GREAT Taste of Britain regional events launch in Poland.  November 2013 TBC: Emerging Europe UK roadshow .  January 2014 TBC: Taste of Britain regional event in Vienna. 17

Thank you for listening jonathan.knott@fco.gsi.gov.uk 18