A number of positive factors underpin this forecast. Investment is forecast to provide the largest proportionate increase in the components of demand. In 2006, investment growth of 4 per cent is expected, substantially higher than the per cent figure for 2005. Much of the improvement can be traced to Germany where business sentiment appears to be strong, thereby prompting an expectation of increased investment. The strong investment performance is expected to persist into 2007 with a growth rate of per cent forecast. .