The findings show that Poland, Romania, and Ukraine top the list of the most attractive countries for new investments—despite the ongoing war on Ukrainian soil.
Eastern Europe on the Rise
Over half (55%) of the 133 German companies surveyed believe that Eastern European markets will become even more crucial to their operations by 2030, while only 7% foresee a decline. This trend reflects growing business confidence in the region’s economic potential, fueled by factors like strong domestic demand and an abundance of skilled labor.
- 42% plan new investments within the next 12 months.
- 56% expect to invest within the next five years.
Many of these businesses are looking to expand or relocate production facilities, citing mounting challenges in Germany—ranging from higher costs to regulatory hurdles—as key drivers for shifting operations abroad.
Poland: A Proven Success Story
German firms laud their partnership with Poland, where:
- 48% of respondents have already invested, and
- 45% plan to invest more in the coming year.
Poland’s appeal lies in its stable business environment and large consumer market. As Michael Harms, Executive Director of OA, notes, the German-Polish economic relationship is a “remarkable success story,” evidenced by Poland’s ranking as Germany’s fourth-largest sales market—even ahead of China.
Romania: Rapidly Gaining Ground
Romania is another standout performer in the region, with 45% of surveyed companies planning investments there within the next 12 months. Although its five-year outlook is slightly more conservative at 43%, the country remains an attractive location due to:
- Growing consumer demand
- EU integration and associated funding opportunities
- Close ties to neighboring Moldova, which may also benefit from Romania’s EU-oriented trajectory
Ukraine: The Surprising Contender
Perhaps the most striking finding is that 21% of respondents have already invested in Ukraine, and 35% intend to do so in 2025, despite ongoing Russian aggression. Over the next five years, 41% of German businesses surveyed are eyeing new projects in Ukraine, drawn by:
- EU Accession Momentum: Ukraine’s path toward European integration promises future regulatory reforms and funding avenues.
- Skilled Labor Force: A wealth of qualified personnel supports advanced manufacturing, IT, and other high-value industries.
- Emerging Market Potential: Infrastructure development and robust internal demand position Ukraine as a growth market—particularly post-conflict.
“Ukraine securing third place among the most attractive investment destinations shows the country’s immense potential,” emphasizes Michael Harms.
Why Eastern Europe Appeals to German Investors
- Proximity to Germany: Companies remain close to their primary markets while benefiting from lower operating costs.
- Familiar Investment Climate: German businesses already have extensive networks and experience in the region, reducing the risks associated with expansion.
- Bright Outlook: A striking 80% of surveyed firms believe business conditions in Eastern Europe will improve over the next five years.
Key Takeaways for Global Investors
- Manufacturing Relocation: Rising costs and regulatory barriers in Western Europe are pushing businesses to transfer or expand operations in countries like Poland, Romania, and Ukraine.
- Post-War Rebuilding in Ukraine: Despite conflict, international support and potential EU membership fuel optimism about Ukraine’s long-term investment climate.
- Growing Domestic Demand: Both Poland and Romania offer large consumer bases, while Ukraine’s market could surge once reconstruction gains momentum.
- Attractive Workforce: The region is rich in qualified professionals—particularly in engineering, IT, and technical fields—making it highly competitive for advanced manufacturing and tech investment.
With Eastern Europe increasingly recognized as a key growth engine, German companies—and by extension, international investors—are setting their sights on Ukraine, Poland, and Romania to drive their next wave of expansion and innovation.
