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East German manufacturing: Double-digit growth in investment slated for 2006

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  • Peter Jäckel

Abstract

According to the findings of the "New Federal States" investment survey conducted by the Ifo Institute, the manufacturing companies in the new federal states are planning to invest around 2.5 billion euros in 2006, after a sharp drop last year. This corresponds to an increase of 12% year-on-year. This surge will be slowed by a marked decrease on investment in manufacturing of road vehicles, but strengthened by the significant increase in investments by both the chemical and the electro-technical industries. Given the largely constant manufacturing employment figures in the new federal states, per capita investment shows a correspondingly large increase, while investment intensity continues to be over 50% higher than that in the corresponding industry branch of the old federal states. It appears that the manufacturing industry in the new federal states has left behind the investment trough: in the coming years, it should not fall below the 6.5 billion euros invested in 2003.

Suggested Citation

  • Peter Jäckel, 2006. "East German manufacturing: Double-digit growth in investment slated for 2006," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(11), pages 28-30, June.
    • Handle: RePEc:ces:ifosdt:v:59:y:2006:i:11:p:28-30
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    File URL: https://www.ifo.de/DocDL/ifosd_2006_11_4.pdf
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    References listed on IDEAS

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    1. Annette Weichselberger, 2005. "Western German manufacturing plans to increase investments by 4% in 2005 after three years of spending cuts," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 58(17), pages 25-31, September.
    2. Annette Weichselberger, 2006. "Western German manufacturing: Investment recovery after three-year decline," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(02), pages 49-54, January.
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    Cited by:

    1. Peter Jäckel, 2007. "Eastern German manufacturing: Enormous increase in investment," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 60(07), pages 26-28, April.
    2. Peter Jäckel, 2006. "Double-digit growth in manufacturing investments in eastern Germany," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(24), pages 64-66, December.

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    More about this item

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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