2023 brand the tenth anniversary of the Regional Attractiveness Index (IAT) by France's Foreign Trade Advisors (CCE), carried out in partnership with Eurogroup Consulting. Over the past ten years, this index, which measures France's attractiveness from abroad, has evolved positively, despite the shocks associated with social and health crises and major international developments.
For this 2023 edition, proof of its dynamism, nearly 1,800 respondents took part in the creation of this Index, This represents 42% of all CCE international sales.
FRANCE'S APPEAL REMAINS STRONG DESPITE THE INTERNATIONAL CONTEXT
62.7points
Overall index down slightly
80% positive or very positive responses
Feelings« index up
After peaking at its highest point since 2015, France's Attractiveness Index is down slightly this year compared to 2022. This is due to an unprecedented drop in the «Energy supply and cost» criterion.
Despite the optimistic underlying trend, which is reflected in a Very high «felt» index and stability of a majority of criteria, the 2023 Index is down on the previous year. It reaches 62.7 points (vs 64 points last year), and thus return to the levels of 2019 or 2021, two years marked by social tensions and the effects of the Covid-19 crisis.
This year, the reason for the drop is to be found in the Respondents are very concerned about energy supply and energy costs. After an initial drop in 2022, this criterion is now down sharply, by 17.9 points.
FOREIGN INVESTORS REMAIN SENSITIVE TO TAX AND ADMINISTRATIVE SIMPLIFICATION REFORMS
In line with the results of previous editions, this year's CCEs are once again paying close attention to the following aspects French government's tax policy.
Expectations of the executive remain high, particularly in terms of simplifying access to land and continuing to reduce taxation, or, to a lesser extent, in the support for industrial sectors and innovation. For example, 82 % of respondents were in favor of further cuts in production taxes. On the other hand, only a minority of respondents expect a positive impact from the unemployment insurance and pension reforms: only 43% believe they will have a positive impact.
FRANCE RANKED 3RD MOST ATTRACTIVE COUNTRY IN EUROPE
For the first time, the CCE compare the attractiveness of our region with its European neighbors.
For several years now, France has topped the European rankings for investment projects, it continues to be perceived as less attractive than some of its neighbors. In fact, the CCEs position France as the 3rd most attractive country, after Germany and the Netherlands. Next come Belgium, Spain and Italy. Interestingly, the UK is perceived by CCEs as being at the same level of attractiveness as Italy. These results undoubtedly highlight the need for better international communication on the government's actions and results in this area. In the current context, France's ability to offer investors a secure energy supply could be the focus of special attention.
Survey methodology
The Indice d'Attractivité du Territoire (IAT) is an online survey, based on voluntary participation and accessible to the entire network of Foreign Trade Advisors, i.e. almost 4,500 CCEs, nearly two-thirds of whom are based abroad, in 152 countries.
They are asked to assess potential investors' perception of France's attractiveness according to twelve criteria:
- administrative and regulatory burden
- taxation
- quality of workmanship
- labor costs
- flexible working and social climate
- legal certainty
- energy supply and cost
- infrastructure quality
- innovation and research capabilities
- quality of life and environment
- personal safety
- cultural environment
