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admin 29.11.2013

Some reduction in producer price inflation has increased the profitability of business investment.
Net investment will increase the productive capacity of the economy and enable higher long run economic growth.
In a depressed economy, increased investmentĀ  can also trigger a positive multiplier effect.

Without necessary investment, the economy is more likely to experience supply constraints, and it will lead to a lower long run trend rate of economic growth.
But, business also need public sector investment to finance infrastructure improvements such as transport.

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