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Investment in Russia Branding in Poland Research in Germany

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Credit crunch not hitt<strong>in</strong>g<br />

CEE <strong>in</strong>vestment plans<br />

Troubles <strong>in</strong> the credit<br />

markets are not dampen<strong>in</strong>g<br />

corporate plans for<br />

new foreign direct <strong>in</strong>vestments,<br />

says a detailed<br />

survey of top executives<br />

by management consult<strong>in</strong>g<br />

firm A.T. Kearney.<br />

As far as US <strong>in</strong>vestors are concerned,<br />

Central and Eastern Europe<br />

rema<strong>in</strong>s an <strong>in</strong>terest<strong>in</strong>g dest<strong>in</strong>ation with<br />

<strong>Russia</strong> at n<strong>in</strong>th, <strong>Germany</strong> tenth, <strong>Poland</strong><br />

twenty second and the Czech Republic<br />

twenty fifth <strong>in</strong> the list of most <strong>in</strong>terest<strong>in</strong>g<br />

<strong>in</strong>vestment dest<strong>in</strong>ations.<br />

The assessment of senior executive<br />

sentiment at the world's largest companies<br />

found corporate <strong>in</strong>vestors optimistic<br />

about the prospects for develop<strong>in</strong>g<br />

nations and <strong>in</strong>creas<strong>in</strong>gly target<strong>in</strong>g them<br />

for more corporate <strong>in</strong>vestment <strong>in</strong> the<br />

years ahead. These are among the f<strong>in</strong>d<strong>in</strong>gs<br />

from the latest Foreign Direct<br />

<strong>Investment</strong> Confidence Index, a regular<br />

survey of global executives conducted by<br />

A.T. Kearney. The Index provides a<br />

unique look at the present and future<br />

prospects for <strong>in</strong>ternational <strong>in</strong>vestment<br />

flows. Companies participat<strong>in</strong>g <strong>in</strong> the<br />

survey account for more than USD3.8<br />

trillion <strong>in</strong> global revenue.<br />

Europe's strong economy helped<br />

<strong>Germany</strong> ma<strong>in</strong>ta<strong>in</strong> its position <strong>in</strong> the top<br />

ten rank<strong>in</strong>gs whilst <strong>Russia</strong>, <strong>Poland</strong> and<br />

the Czech Republic all score well.<br />

‘The world's economic centre of power<br />

cont<strong>in</strong>ues its perceptible shift from<br />

developed to develop<strong>in</strong>g markets,’ said<br />

Paul A. Laudic<strong>in</strong>a, manag<strong>in</strong>g officer and<br />

chairman of A.T. Kearney. ‘While global<br />

FDI recovers further from its 2003 lows,<br />

the <strong>in</strong>creas<strong>in</strong>gly transnational behavior<br />

of corporations is reflected <strong>in</strong> their<br />

<strong>in</strong>vestment preferences. Developed<br />

countries are compet<strong>in</strong>g with develop<strong>in</strong>g<br />

countries for <strong>in</strong>vestment capital, and<br />

develop<strong>in</strong>g countries are <strong>in</strong>creas<strong>in</strong>gly<br />

w<strong>in</strong>n<strong>in</strong>g out.’<br />

Concern about U.S. Economy<br />

Despite the shift <strong>in</strong> <strong>in</strong>vestment expectations,<br />

global executives rema<strong>in</strong> concerned<br />

over the role the U.S. plays <strong>in</strong> the health<br />

of the world's economy. Global executives<br />

cited the slow<strong>in</strong>g U.S. economy (55<br />

percent), volatility of the U.S. dollar (45<br />

CEE PACKAGING<br />

Moscow’s GUM shopp<strong>in</strong>g centre. The challenge for bus<strong>in</strong>esses is to<br />

provide the demand<strong>in</strong>g <strong>Russia</strong>n consumer with the same quality as<br />

Western Europeans and North Americans receive.<br />

percent), ris<strong>in</strong>g <strong>in</strong>terest rates (39 percent),<br />

<strong>in</strong>creased government regulation<br />

(38 percent) and the volatility of energy<br />

prices (37 percent) as the top concerns<br />

fac<strong>in</strong>g the world economy.<br />

CEE Packag<strong>in</strong>g, www.ceepackag<strong>in</strong>g.com Tel.: +48 22 2195466, +48 502 159080<br />

3

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