Double-digit growth in manufacturing investments in eastern Germany.

The results of the latest Ifo Investment Survey in eastern Germany show that an increase in investments of 17 percent to nearly €8 billion is expected for 2006. Enterprises in electrical engineering account for the largest share, with plans to invest nearly one fifth of this sum. Total investment growth in 2006 will be reduced somewhat by the clear decline in investments in road vehicle construction (minus 11 percent). For 2005 the Ifo Investment Survey shows an investment decline of 17 percent or €1.25 billion. This is primarily due to the special situation in the paper producing industry, which reduced its investments by five sixths after completing several major projects in 2004.