27 Feb 2017

Best Countries for Business Investments: USA and China

USA and China are the two most important countries for the overall growth of prospects of companies over the next 12 months shows the 19th annual “’Global Investor Survey“ from PwC. The survey is done among 1400 CEOs and investment professionals from 59 countries around the globe.

Technologies’ development will play a major role in transforming businesses around the world, and that is both a threat and a possibility to the company’s growth over the next 5 years think over 60% of the participants. Those professionals particularly  focused on technology and financial industries are most appealing for investors when choosing a country to invest. The same survey puts UK and Germany on third place as top countries for business growth.

Among the other tendencies marked by the interviewed participants is their firm belief that providers of capital should have a higher impact on company strategy. 61% of the investors ranked providers of capital the 3rd most important stakeholder to have a high impact on strategy, compared to CEOs who said that providers of capital have the 6th largest impact on their company’s strategy. But both parties agreed that educated, good skilled and pliable workers should be number one priority for companies.

The influence of Brexit over the business was also one of the questions in the PwC’s survey. And despite that the UK has gain 19% more trust among investors compared to the results of last year, lots of them expressed concern about the future: “Importance could be interpreted in a positive light – that the countries selected would be those expected to grow most or the fastest. On that basis, the Brexit vote and all the uncertainty surrounding the UK’s future relationship with the EU appear not to be deterring investors.” Hilary Eastman, head of global investor engagement at PwC commended.

As a confirmation of her words, came the news that Morgan Stanley is considering moving around 300 job positions away from UK and replacing them either in Dublin, Ireland or Frankfurt, Germany. The concerns for the banking giant are mainly that by leaving the EU, Great Britain will leave the single market and many of their clients and investors will lose their access to the European banking passport system.

Another concern for investors and CEO’s around the world, is the world’s growing geopolitical uncertainty. Over 80% of the investors and 74% of the CEO’s think that this could have the biggest negative impact over the company growth in the next 12 months. The future of the Eurozone, social instability, cyber threats and protectionism are the other alarming tendencies according to the world’s top businessmen. Nevertheless, the results of the survey are encouraging according to the PwC. “Investment professionals around the world are upbeat about global economic growth prospects, despite recognizing the shifting political landscape in which companies operate,” the head of global investor engagement at PwC concluded.