CONFIDENTIAL # B
G.F. 326
Table 1
3.
(a) Capital expenditure on plant and
machinery
According to the quarterly GDP estimates, overall expenditure on plant and machinery declined by 4% in the third quarter of 1989. This represents a substantial weakening from the corresponding
increases of 17% in the first quarter and 7% in the
second quarter. The increase was 14% for 1988 as a
whole (Table 1).
4.
Expenditure on plant and machinery was predominantly made by the private sector. Its share amounted to about 98% in the first three quarters of 1989, compared with 97% for 1988 as a whole. Private sector expenditure fell by about 4% in the third quarter, having increased by 17% in the first quarter
and 8% in the second quarter. The increase for 1988
as a whole was 13%. Public sector expenditure on plant and machinery has been subject to wide fluctuations. Having increased by 47% in 1988 and 21% in the first quarter of 1989, it fell by 27% in the second quarter, and further by 31% in the third
quarter.
5.
(b)
Retained imports of capital goods
Subject to certain statistical limitations,
retained imports of capital goods provide another
useful indicator of the latest trend in investment in
plant and machinery. These retained imports decreased by about 9% in the third quarter, having
increased by 18% and 7% respectively in the first and
second quarters.
Taking the first three quarters of
CONFIDENTIAL #3