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Eastern German manufacturing: Enormous increase in investment

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  • Peter Jäckel

Abstract

According to the results of the latest Ifo Investment Survey (autumn 2006), firms in eastern German manufacturing intend to invest ca. €8.6 billion in new buildings and equipment in 2007. This amounts to an increase of 5% over last year. For 2006, the survey responses indicate a sharp increase of 20½%. This corresponds to an investment growth of €1.4 billion to €8.2 billion. This robust increase was largely the result of the sharp investment growth in electrical engineering and the chemical industry. With a more than 40% increase and more than a half a billion euros, electrical engineering increased the gap to the other industries considerably; the investments of electrical engineering alone amounted to one fourth of the total volume in manufacturing. In second place in 2006, with an investment growth of nearly 70% or nearly a half a billion euros, was the chemical industry. Thus, about 40% of total investments in eastern German manufacturing in 2006 was attributable to these two industries alone.

Suggested Citation

  • 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.
    • Handle: RePEc:ces:ifosdt:v:60:y:2007:i:07:p:26-28
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    File URL: https://www.ifo.de/DocDL/ifosd_2007_7_3.pdf
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. Annette Weichselberger, 2007. "Western German manufacturing: Unhindered increase in investments in 2007," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 60(02), pages 29-33, January.
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    Cited by:

    1. Gernot Nerb & Manuel Birnbrich, 2007. "Boom continues in manufacturing," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 60(13), pages 28-32, July.
    2. Manuel Birnbrich, 2007. "Wholesaling: Buoyant demand induces strong growth in investments," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 60(16), pages 33-36, August.

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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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