More than ever, France attracts foreign investments

13 March 2023 Business

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“With the highest number of foreign investment decisions in France, 2022 is a record year. More than ever, France is attractive, and a job-creating country”. With this tweet, French President Macron announced the figures of the annual report on international investments creating jobs in France.

According to this report, in 2022, the number of job-creating foreign investment projects registered reached a record 1,725, i.e. a 7% increase compared to 2021. These new projects have created or maintained more than 58,000 jobs, a 31% increase compared to the previous year. As the French Ministry of the Economy, which published these figures, states, an average of 33 investment decisions were taken per week in 2022. And as such, “France has historically reached its highest level of attractiveness”, says the ministry.

Investors from all over the world

These projects will come from around sixty different countries in 2022. Though European investors remain in the majority (65% of projects), the United States are back in first place as an investor country in France this year with 280 projects (16%) and the creation in France of more than 17,000 of the jobs listed. The Top 3 of countries investing in France is made of:

Germany with 256 projects (15%, i.e. more than 7,000 jobs);
the United Kingdom with 176 projects registered and 4,000 jobs;
the Netherlands with 142 projects.

The French Ministry of the Economy also points out that half of these projects are decisions to set up new facilities, “which attests to the interest shown by international investors in France’s business environment and economic prospects”. As for expansion decisions, they are “a sign of the renewed confidence of foreign companies that have already invested in France”.

All over France

Business France, national agency in charge of the international development of French companies which published these figures, notes that these investment projects impact every corner of France, since medium-sized towns are the main destinations for these investment decisions.

More precisely, 43% of investment decisions concern cities under 20,000 inhabitants and represent 39% of jobs. And the Ministry is pleased to note that “foreign investors create jobs and added value throughout France and thus contribute to the revitalisation of our territories”.

In all fields

As to the fields of exercise of most of these investments, production activities remain in the majority with 26% of investment decisions (457 projects). Thus, the number of industrial jobs created or maintained by a foreign investment in this sector increased by 13% in 2022. On average, this means 38 jobs created per industrial project in 2022 against 34 in 2021.

Furthermore, the French Ministry of the Economy points out that the report shows a 23% increase in the number of Research & Development projects (191 projects) compared to 2021 and a 53% increase for jobs creation in this sector (nearly 5,000 jobs).

Methodology

Pointing out that a more complete analysis will be published in mid-May (ahead of the Choose France Summit), Business France explains the methodology of this report, created in 1993, which lists foreign investment projects that create sustainable employment.

It is based on project announcements validated by the teams of Business France and the Regional Development Agencies and counts the number of associated jobs. The number of jobs created or maintained is the number announced for the next three years.