Managing the transition in the Mediterranean

Country: Algeria, Cyprus, Egypt, Euromed, Israel, Jordan, Lebanon, Libya, Malta, Morocco, Palestine, Syria, Tunisia, Turkey
Activity: Agribusiness, Furnishing and houseware, Other or not specified, Bank, insurance, other financial services, Biotechnologies, Public works, real estate, infrastructure, Chemistry, plasturgy, fertilizers, Electronic components, Car manufacturers or suppliers, Distribution, Water, environment and utilities, Electronic ware, Conventional Energy, Electric, electronic & medical hardware, Consulting and services to companies, Data processing & software, Mechanics and machinery, Aeronautical, naval & railway equipment, Drugs, Metallurgy & recycling of metals, Telecom & internet, Textile, clothing, luxury, Tourism, catering, Transport, logistics, Glass, cement, minerals, wood, paper

2011 report and impact of crises on foreign investment

 

One crisis leads to another one. Nearly four years after the start of the subprime crisis, which had initially spared the Southern Mediterranean countries before pulling them in with its second-round effects, the year 2011 was marked by the democratic movements which rose in nearly all the Southern countries. As no great surprise, the number of announcements of FDI projects dropped by 22% in the MED countries, with 647 projects detected in 2011 against 834 in 2010. This drop is even more marked in terms of amounts: 26.5 billion euros (€bn), against €38.5bn in 2010 that is - 31%. The situation varies, however, between countries. The drop in FDI is also associated with a decline in tourism revenues, remittances from migrants and, for some countries, exports. The result is a delicate situation for the new governments, which do not have the necessary flexibility to satisfy the legitimate aspirations of economic and social justice manifested by their populations during this transitional year. Private and more particularly foreign investment is one of the levers which will enable them to react, on the condition of being able to convince investors to come to terms with these expectations.


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