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Eastern German Manufacturing: Increased Output, Stalled Loss Reduction, Stagnating Employment

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  • Joachim Gürtler

Abstract

In January 2000, the Ifo Institute again asked the eastern German industrial firms that participate in the Ifo Business Survey about their production and personnel plans for the current year. This special survey, which has been conducted regularly since 1991, indicates that not only has the mood in eastern German manufacturing improved but that firms also are again planning quite strong production increases. Growth having lost some momentum last year, the responses now show an average increase in net industrial output of 9% for this year. The output of the industrial goods industry will increase at an above-average pace of +10%, whereas growth in the food and beverage industry will only be about 6%. Personnel plans indicate that employment numbers in industry will remain at about the level of last year. Whereas further dismissals are planned in the basic materials and producer goods industry, in the consumer goods industry new hirings are planned. Another special survey question asked regularly in the Ifo Business Survey indicated that profitability in eastern German manufacturing has again somewhat improved but is still by no means satisfactory.

Suggested Citation

  • Joachim Gürtler, 2000. "Eastern German Manufacturing: Increased Output, Stalled Loss Reduction, Stagnating Employment," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 53(14), pages 03-10, May.
    • Handle: RePEc:ces:ifosdt:v:53:y:2000:i:14:p:03-10
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    Cited by:

    1. Joachim Gürtler, 2001. "East German manufacturing: Production still in full swing, first reports of favourable profitability, slight increase in employment," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 54(09), pages 33-40, October.

    More about this item

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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