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The German economy was showcased at Hanover Messe, the largest industrial fair in the world. All types of machines, from packaging sorters to a 'metalbashing' assembly for automobiles were displayed at the fair, which focuses on the small and midsize firms that represent the basis of the German economy. There was a new element in Germany's success on display at the 2007 Hanover Messe. After years of relying on exports to obtain growth, domestic investment in German machinery, plants, and production capacity has increased. Economists say this growth in investment is important, since it means the nation's recovery will be self-sustaining, rather than dependent on conditions in other parts of the world. According to Thomas Kaeser, the head of Kaeser Komprossoren, a top manufacturer of air pressure compressors, there was a 'traffic jam' in domestic investment until the end of 2006, but this has ended, and double-digit growth rates are now evident. The same scenario is found throughout Germany in all industry sectors. During the first two months of 2007, domestic manufacturing orders rose 24 percent, compared with two percent for the entire 2005-2006 period. Additionally, international orders for German manufacturing firms increased by 17 percent in 2007, compared with 53 percent for the period from 2000 to 2006, according to the VDMA engineering association. Germany's overall economy expanded by 2.7 percent in 2006 after five years of slow or no growth.
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