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

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An Introduction to Emerging Europe: Emerging Market Opportunities on the UK’s Doorstep

Jonathan Knott, HM Ambassador Budapest

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Why Emerging Europe?

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110 million consumers

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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

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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

Disposable income set to increase substantially

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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

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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%

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Bilateral Trade

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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

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• Poland was the UK’s 11th 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%)

UK food & drink exports to Emerging Europe in 2012

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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%).

Exports continue to grow in 2013

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• Outdated perceptions of the region among business in the UK
• Transparency
• Bureaucracy
• Strong and increasing competition

Our main challenges

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• Austria

29 China 91

• Slovenia

35 Russia 112

• Slovakia

46 Brazil 130

• Hungary

54 India 132

• Poland

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• Czech Rep

65

• Bulgaria

66

• Romania

72

• Croatia

84

World Bank Ease of Doing Business survey 2013, rankings 1-185

Ease of Doing Business ranking: 2013

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• 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

Corruption Perceptions Index: 2012

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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

A competitive marketplace

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• 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).

CEN: driving growth in Emerging Europe

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• 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.

Forthcoming activities supporting food & drink exports to Emerging Europe

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jonathan.knott@fco.gsi.gov.uk

Thank you for listening