Investment in manufacturing in the new Länder: decline in 2002 but strong increase planned for 2003

The results of the latest Ifo Investment Survey in western German manufacturing show that eastern German manufacturing registered declining investment in 2001, contrary to initial plans. For 2003 the estimate based on survey responses shows an investment volume of €7.35 billion or 14% over the previous year, whereby about half of the planned investment originates in three industries: electrical engineering, automobile manufacturing and the chemical industry. Accordingly, the nadir of investment in eastern German industry will be overcome in 2003.