Improving wage dynamics in the EU will apparently help drive foreign direct investment in Morocco, Tunisia, Egypt, and Turkey, according to a report from Renaissance Capital (pdf). 13 European countries have reportedly reached “peak” wages, driven in particular by Central European states. This increase looks set to continue, driving inflation, according to the report. MENA nations look set to be unintentional beneficiaries of this trend, attracting FDI in manufacturing with their comparative low wages. Other factors which will drive this influx include improving education levels especially among women, and better demographics than Central Europe.

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