France confirms its first place in Europe in terms of attractiveness for the fourth consecutive year

The EY “France Attractiveness Survey” was published today. Produced each year, it identifies projects for international establishments in Europe and analyzes the perception that economic decision-makers have of our country; it therefore measures real and perceived attractiveness and compares the main European countries.

This year, for the fourth time in a row, France confirmes its first place on the European podium in terms of attractiveness, with 1,259 investment projects accounted for in 2022. Second was the United Kingdom, with 929 projects recorded, then Germany with 832 projects. Despite a difficult and complex international context, France demonstrated that its economy is not only resilient, but also triumphant. France is still experiencing an increase in the number of foreign investments, whereas its main competitors (Germany, United Kingdom) are seeing a decline.

The “2022 Annual Report: Foreign investment in France”, also published by Business France today, confirms these good results in terms of attractiveness, which result from an environment favorable to businesses. France is taking action on fundamental issues for the success of setting up business on its territory: ready-to-use industrial land, a pool of recognized talent, and the “France 2030” investment plan, which supports the transformation of the economy.

“Despite a complex international context, France demonstrates day after day that it is a large, open, dynamic and innovative economy. Since 2019, France has been ranked first in Europe for hosting foreign investment projects. Our stable economic and regulatory environment, which is resolutely pro-business, promotes the confidence of foreign investors in our country. These excellent results are consistent with the record year for foreign investment recorded by Business France.”

Laurent Saint-Martin, Chief Executive Officer of Business France

“On a global scale, France has confirmed the momentum initiated in 2017 in terms of attractiveness, but also innovation. Research and development operations occupy an important place in the French economy, which hosts one in five R&D investments made in Europe by foreign investors. Each year, global tech and industry giants strengthen their presence in France, benefeting the transformation of our economy. The rapid deployment of the “France 2030” plan announced in October 2021 illustrates France’s ability to remain a major industrial, innovative and daring nation that knows how to anticipate current and future transformations.”

Pascal Cagni, Chairman of the Board, Business France and Ambassador for International Investments.

Once again this year, France retained its first place for hosting manufacturing projects, with 547 projects identified,  representing one in four projects in France dedicated to re-industrialization in 2022 (compared with less than one-third in 2016). The “France 2030” investment plan, which concerns the sectors of the future, constitutes a fundamental factor of attractiveness, in which foreign investors fully have their place.

The re-industrialization of France is continuing, particularly in terms of decarbonization, semi-conductors, healthcare, or even decarbonized aircraft and electric vehicles. The latter captured 30% of foreign direct investment in the automotive industry, compared with 12% in 2018.

France should also continue to benefit from the relocation movement, with one in two business leaders ready to repatriate part of their operations to the country.

France maintains its position as European innovation champion. A total of 144 research and development center projects were recorded in 2022 (an increase of 8% compared with 2021), ahead of the United Kingdom and Germany, which made up the podium. France is recognized throughout the world as a land of innovation, with 64% of foreign investors considering it to be more attractive than any other European country in terms of technological factors.

As Business France pointed out in its last report, foreign investment benefits all regions of the country, in particular mid-size towns and rural areas. One in two projects was directed towards medium-sized municipalities of fewer than 200,000 inhabitants.

Foreign investors create jobs and value-added throughout France, thereby contributing to the revitalization of our regions.