Economy – Pickup in 2H09?

As I continue, like so many others, to look  for a job, the report from the National Association for Business Economics yesterday morning came as music to my ears.  The panel of 45 economics expects economic growth to rebound in the second half of 2009. And almost 75% of the survey respondents expect the recession to end by the end of 2009.  I thought I would provide a quick summary of their predictions in the table below:

GDP Growth

-1.8% in 2Q09, +1.2% for 2H09, -3.7% for FY09, +2.7% for FY10

Deficit

$1.7T in 2009 falling to $1.4T in 2010

Jobs

9.8% unemployment in 2009 down to 9.3% in 2010

Housing

Sales and housing starts to hit bottom in 1H09

Disagreement about timing of price bottoming out

Spending

Thrifty behavior to stay

Credit

Obtaining credit remains difficult despite actions from the FED to alleviate crunch

Next 5 years

Potential economic growth between 2.5% and 3%

 

IBM’s Global Location Trends Report

A few days ago, IBM's Global Location Trends report-October 2008 was released.  The report is prepared annually by Plant Location International (PLI), IBM's global center of excellence for global location strategies, and economic development strategies. 

IBM's Global Location Trends study reveals that multinational companies are increasingly widening their investments to include a number of emerging countries, with notable increases in Latin America and Africa.

Some of the key findings from this year's report are:

  • Globally, an estimated 1.2 million jobs will be created by 10,200 foreign (greenfield) investment projects announced in 2007.  
  • The widening of global investment is a structural trend: despite an overall decrease in total investment, companies extend their search for markets, talents, and cost efficiency to new corners of the world.
  • New emerging markets continue to appear on companies' radar screens; Latin America & Africa in particular are increasing their share of global investment
  • Different strategic location drivers (market, talents, cost efficiency) result in a variety of location choices by sector and business function; targeted economic development strategies are indeed effective in responding to these different location strategies.
  • Renewable energy sector promises to be an important new job creator in many different areas globally.
  • Indian and Chinese companies are increasingly creating jobs in key global markets, and becoming important target groups for inward investment attraction.
  • Competition for skills, markets and cost efficiencies forces companies to be increasingly innovative in where they locate their activities and how they structure their global footprint.

To find out more about IBM's Plant Location International team or to download the Global Location Trends report, visit the IBM Plant Location International website.