German high-tech sector flat in 2010: trade body

Mar 01, 2010

Germany's high-tech industry is not expected to return to growth until 2011 after a devastating recession in 2009, its chief lobby group said Monday ahead of the giant CeBIT trade fair.

Turnover this year will be at around the same level as last year, but in 2011, the sector is poised to grow by 1.6 percent to 142 billion euros (193 billion dollars), the BITKOM industry organisation said.

"Demand is taking off significantly, especially in the IT sector," said BITKOM President August-Wilhelm Scheer.

"The barriers for firms to invest in IT solutions are slowly disappearing. We expect a dramatic push from the CeBIT," Scheer told reporters in the northern German city of Hanover.

In 2009, the sector suffered a slump of 4.3 percent, Scheer said, as , Europe's biggest economy, suffered its worst recession since World War II.

"As before, demand is coming from individual consumers," Scheer said, adding that smartphones, mobile computers and flat screen televisions were the most sought-after.

Investment in IT is also beginning to thaw as companies see a brighter future, he said, adding that investment is set to grow by 1.4 percent in 2010, before registering 3.8 percent growth next year, according to BITKOM figures.

The mood among IT and firms has improved as the effects of the crisis begin to fade and investment begins to flow again.

Nearly two-thirds of German high-tech firms (59 percent) expect turnover growth in 2010, a level not seen since mid-2008, before the crisis hammered the sector, BITKOM said.

The bullish prediction came one day before the CeBIT, the world's biggest high-tech fair, throws its doors open to the public with Spain, the current EU president, this year's guest of honour.

German Chancellor and Spanish Prime Minister Jose Luis Rodriguez Zapatero were due to speak later Monday in an official opening ceremony before touring the exhibition early Tuesday.

A total of 4,157 firms from 68 countries are to unveil their latest gadgets, a decline of three percent on last year as many high-tech firms stay away amid strong competition from other events.

In a bid to arrest the slide, this year's has refocused its efforts on fun gadgets for consumers, hoping visitor numbers will be revived.

The fair runs until March 6.

Explore further: Ex-Apple chief plans mobile phone for India

add to favorites email to friend print save as pdf

Related Stories

German high-tech sector holds up: trade group

Mar 02, 2009

Germany's high-tech industry expects to buck the economic crisis this year with sales stagnating but not sinking, its chief lobby group said on Monday on the eve of the giant CeBIT trade fair.

Bullish Schwarzenegger pumps up giant tech fair

Mar 02, 2009

California Governor Arnold Schwarzenegger, guest of honour at the world's biggest high-tech fair, told crisis-hit executives Monday to stop their whining and invest in the future.

Giant tech fair goes 3D to pull in the punters

Feb 28, 2010

The world's biggest high-tech fair kicks off Tuesday with a focus on "smart" gadgets as well as "Avatar"-inspired 3D products to make consumers' lives easier -- and more fun.

Recommended for you

Ex-Apple chief plans mobile phone for India

4 hours ago

Former Apple chief executive John Sculley, whose marketing skills helped bring the personal computer to desktops worldwide, says he plans to launch a mobile phone in India to exploit its still largely untapped ...

Airbnb rental site raises $450 mn

17 hours ago

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

US venture investments highest since 2001 (Update)

Apr 18, 2014

Funding for U.S. startup companies soared 57 percent in the first quarter to a level not seen since 2001, as venture capitalists piled more money into a growing number of deals, according to a report due out Friday.

User comments : 0

More news stories

Ex-Apple chief plans mobile phone for India

Former Apple chief executive John Sculley, whose marketing skills helped bring the personal computer to desktops worldwide, says he plans to launch a mobile phone in India to exploit its still largely untapped ...

Airbnb rental site raises $450 mn

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

Health care site flagged in Heartbleed review

People with accounts on the enrollment website for President Barack Obama's signature health care law are being told to change their passwords following an administration-wide review of the government's vulnerability to the ...

A homemade solar lamp for developing countries

(Phys.org) —The solar lamp developed by the start-up LEDsafari is a more effective, safer, and less expensive form of illumination than the traditional oil lamp currently used by more than one billion people ...

NASA's space station Robonaut finally getting legs

Robonaut, the first out-of-this-world humanoid, is finally getting its space legs. For three years, Robonaut has had to manage from the waist up. This new pair of legs means the experimental robot—now stuck ...

Filipino tests negative for Middle East virus

A Filipino nurse who tested positive for the Middle East virus has been found free of infection in a subsequent examination after he returned home, Philippine health officials said Saturday.

Egypt archaeologists find ancient writer's tomb

Egypt's minister of antiquities says a team of Spanish archaeologists has discovered two tombs in the southern part of the country, one of them belonging to a writer and containing a trove of artifacts including reed pens ...