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Europe’s Industrials Shun Emerging Markets for Slower Growth at Home
Europe’s largest industrial groups are swapping ambitious expansion plans in emerging markets for slower but more stable growth at home, says the Financial Times.
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Europe’s largest industrial groups are swapping ambitious expansion plans in emerging markets for slower but more stable growth at home, says the Financial Times.
“Europe is very stable,” explains Laurent Abadie, CEO of Panasonic Europe. “Growth of 1.9% is not so bad compared to Latin America or Asia.”
Europe’s chemical companies were channeling 80% of growth investments into emerging markets in 2010-2013, according to an analyst at Bank of America Merrill Lynch. Now, he says, the ratio is below 50%. The FT notes that chemical giant BASF describes Europe as its only stable market in 2016.
Researchers S&P Global Market Intelligence agrees. It points out that a common message in company earnings reports for 2015 is that sales have been stable in Europe and falling fast in Asia Pacific. Europe, adds the European economics director at Citigroup, has become “the safe haven” from volatility elsewhere.
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