IBM Business Report Recognizes Improved Investment Environment in Germany

Berlin (ots) - Germany is continuously improving in international
business location rankings, according to a new country report by IBM
Global Business Services. The "Global Location Trends" study marks a
considerable increase in foreign direct investment for Germany.
Reasons cited included moderate wage growth rates in recent years,
tax reductions and the general improvement of economic conditions.
The report names the solar energy industry in Eastern Germany as an
example of Germany's clear quality advantage.

Germany managed to considerably improve its competitive position
in 2008 despite the significant decrease in investments worldwide.
The country also benefitted from the tendency of companies to
increasingly seek stable and reliable investment locations. According
to the study, 26,700 jobs were created in 2008 through 709 foreign
investment projects. Compared to the previous year, this represents
an increase of approximately 8,000 jobs and more than 200 projects in
2008. The industries Machinery & Equipment, Business Services, and
Information and Communications Technology (ICT) profited from
Germany's competitive international investment position.

"The results by IBM Global Business Services concur with our
findings. Germany as a business location has gained further
recognition. Now more than ever, investors value the excellent and
reliable quality the country offers - and this especially in a
globally unstable environment," says Michael Pfeiffer, Chief
Executive of Germany Trade & Invest, the foreign trade and inward
investment agency of the Federal Republic of Germany. Germany Trade &
Invest has recorded a considerable increase in investor interest by
the emerging economies of Asia. Foreign direct investment (FDI) from
China and India has more than doubled in recent years. Currently, FDI
figures stand at EUR 242 billion for India and EUR 355 billion for
China.

US Companies Create Jobs in Germany

Despite this growth, industrialized countries continue to be the
most important investors in Germany. These countries account for
almost 90 percent of the jobs created through FDI projects. Every
third job leads back to the USA. Thereafter, Japan and Germany's
European neighbors were also important to job creation with their
investments. IBM Global Business Services attributed the large labor
effect to the industries Industrial Machinery and Equipment with an
increase of ca. 300 percent, Information and Communications
Technology (an increase of roughly 100 percent) as well as Business
Services (an increase of ca. 40 percent).

The study highlights the high level of quality of Germany as a
business location based on two industry examples: the Solar Industry
and the Shared Service Center sector of Business Services. The
American company Sitel is named as an example of an investor in the
contact center segment, which opened an office in Berlin in 2008 and
has in the meantime created around 1,000 jobs. While the solar
industry has been shaken by the global recession, Germany has also
secured its position in this industry with its competitive advantage
based on quality. Factors cited for this level of success include
relevant experienced staff, an established industry, market proximity
and attractive operating costs. Here the Eastern German federal
states are primarily highlighted.

Germany Trade & Invest is the foreign trade and inward investment
promotion agency of the Federal Republic of Germany. The organization
advises foreign companies looking to expand their business activities
in the German market. It provides information on foreign trade to
German companies that seek to enter foreign markets.

Originaltext: Germany Trade and Invest
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Contact:
Eva Henkel
Phone: +49 (0)30 200 099-173
Fax: +49 (0)30 200 099-111
Email: Eva.Henkel@gtai.com