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
Asia
Lat. Am
1.8
5.8
4.9
1.8
5.1
4.5
1.9
4.7
4.1
Source: HSBC The World in 2050
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Disposable income set to increase substantially
GDP per capita
Real USD
Av. Annual growth forecast
2010-2020
2020-2030
CEE average
7000
5.2%
4.8%
Dev. World
Asia
Lat. Am
27200
4220
4228
1.7%
4.8%
3.3%
2.0%
4.6%
3.6%
Source: HSBC The World in 2050
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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
Czech Rep
Slovakia
Romania
Bulgaria
Hungary
1297
1078
201
343
120
616
4338
1921
552
952
328
1186
234%
78%
175%
177%
173%
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
India
Russia
Turkey
Brazil
12530
8332
7286
5203
3695
10332
6208
5285
4429
3134
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UK food & drink exports to Emerging Europe in 2012

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%)
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Exports continue to grow in 2013
Increase in UK exports over January-March 2013 (year on year)

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
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
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%).
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Our main challenges

Outdated perceptions of the region among business in the UK

Transparency

Bureaucracy

Strong and increasing competition
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Ease of Doing Business ranking: 2013


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Austria
Slovenia
Slovakia
Hungary
Poland
Czech Rep
Bulgaria
Romania
Croatia
29
35
46
54
55
65
66
72
84
China
Russia
Brazil
India
91
112
130
132
World Bank Ease of Doing Business survey 2013, rankings 1-185
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Corruption Perceptions Index: 2012
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

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




Austria
Slovenia
Poland
Hungary
Czech Rep
Croatia
Slovakia
Romania
Bulgaria
25
37
41
46
54
62
62
66
75
China
Brazil
India
Mexico
Russia
80
69
94
105
133
Transparency International Corruption Perceptions Index 2012 – rankings from 1-174
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A competitive marketplace
Source of imports 2011
Poland:
Germany
Italy
Czech Rep
28.7% Russia 10.3% Netherlands 5.9%
5.3% China 5.3% France 4.4%
4.3%
Romania:
Germany
France
Austria
17.2% Italy
11.4% Hungary 8.8%
5.8% China 4.6% Kazakhstan 4.2%
4%
Source: CIA Fact book
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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).
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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.
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Thank you for listening
jonathan.knott@fco.gsi.gov.uk
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