Manufacturing industry in east Germany: will 2001 mark the first increase in investment in six years?

According to the autumn 2000 Ifo Investment Survey in east Germany, a 7½% decline in investment in the manufacturing industry is expected for 2000. Strong increases in investment spending, however, occurred in the capital goods sector, especially in electrical engineering. Declines were reported in the basic materials and consumer goods sectors. This year, investment spending may increase by 4%, but this will be attributable to a few large-scale projects. These include especially projects in the electronic component sector, which will account for a quarter of total investment in manufacturing. The total share of capital goods manufacturers will amount to 55% this year. Many industries in the east German manufacturing sector still have completely different structures of investment goals as in west Germany.