Germany Confirms Position as Most Attractive Investment Location in Europe



    BERLIN, June 4 /CNW/ - In the eyes of international managers, Germany is
capable of withstanding the current economic crisis better than other
countries. This is the result of a study on the attractiveness of European
markets published today by Ernst & Young. According to the "European
Attractiveness Survey", Germany is the number one location in Europe and
number six worldwide.
    Ernst & Young surveyed 809 international decision-makers on the
attractiveness of the European economic area. An additional 207 foreign
companies were asked questions specific to Germany as a business location.
Despite the economic crisis, Germany held its position from the previous year.
In fact, the managers surveyed asserted that Germany is dealing with the
challenges of the crisis better than other European countries.
    Based on most business location factors, Germany fares even better than
in the previous year. In terms of infrastructure (both telecommunications and
logistics), the social climate, the qualifications of its workforce, and the
quality of life, Germany receives high marks. When assessing Germany's future
economic development, 37 percent of those surveyed predict a further growth of
the location's attractiveness over the next three years. 86 percent expressed
confidence that Germany has the ability to manage the crisis. This is the
result of Germany's innovation capacity and entrepreneurial spirit.
Additionally, sector-specific know-how, the existence of large industry
clusters, as well as the stability of the banking sector and state assistance
for companies, were named as decisive location advantages.
    Accordingly, Germany has registered a clearly positive development in
terms of foreign direct investment: the number of investment projects in 2008
climbed by 28 percent. "The results of the survey identify the strong trust in
this business location. Germany maintains its position as the most attractive
investment site in Europe. Even further, Germany is certified as an especially
resilient location. Most likely the most important signal of the survey is
that investors rely, also long-term, on the stability of Germany as an
investment location," said Michael Pfeiffer, Chief Executive of Germany Trade
& Invest, the foreign trade and inward investment promotion agency of the
Federal Republic of Germany.
    Peter Englisch, Partner at Ernst & Young and author of the study, traces
Germany's strong position back to its handling of previous challenges: "It is
possible that Germany enjoys such strong trust by foreign companies because
the economy has already shown that it is able to successfully rebound from
difficult situations in previous years," said Englisch, naming the examples of
the handling of German reunification, as well as the reduction of the budget
deficit, the Agenda 2010, or the decrease in unit labor costs.
    In international rankings, Germany remained - as it was in the previous
year's survey - the sixth most attractive investment location. The list is led
by China, the USA, and India, followed by Russia, Brazil, and Germany. These
results confirm a change in the current trend: unlike in previous years, in
which emerging markets increased in attractiveness, Western Europe
strengthened its position in the survey. 40 percent of those surveyed named
Western Europe one of the leading investment locations worldwide. In
comparison, only 33 percent came to this conclusion in 2008. For foreign
investors, Western Europe is again the most attractive region worldwide.
    In contrast, China and India saw significant losses in the eyes of those
surveyed. While 47 percent of the managers surveyed named China the number one
location in 2008, this number fell to 33 percent in the current survey. India
lost ten percentage points, dropping from 30 percent in 2008 to the current 20
percent.

    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 tap into foreign markets.




For further information:

For further information: Media Contact: Eva Henkel, Email:
eva.henkel@gtai.com, Phone: +49(0)30-200099-173, Fax: +49(0)30-200099-11

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