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Under Investment slows Recovery


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Old 09-03-2014, 09:58 AM   #1
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Coins Under Investment slows Recovery

Under-investment: There are several reasons why global economic growth has failed to return to the levels that were normal before the financial crisis burst upon us, but clearly one of the more important is overall loss of confidence of businesses about the future, which inhibits their willingness to take on the risks of investing in new ventures, greater capacity.

The ratings agency Standard & Poor’s says capital expenditure in real terms actually fell 1 per cent last year, and is expected to decline again this year.

The Economist comments: “A chicken-and-egg problem. Without a strong global recovery, companies will not spend more. But if they do not spend more, there will not be a strong recovery.”

copyright: Martin Spring of OnTarget
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