CONFIDENTIAL # 3
Investment in plant and machinery
Table 1
(all growth rates quoted in this section are on a year-on-year basis and are expressed in real terms, unless otherwise indicated)
3.
(a) Capital expenditure on plant and
machinery
According to the latest estimates in
the quarterly GDP series, overall expenditure on
plant and machinery grew by 17% in the first quarter of 1989, compared with an increase of
14% for 1988 as a whole. However, in the second
quarter, the growth rate was only about 5%
(Table 1).
4.
The private sector continued to dominate investment in plant and machinery. Its
share amounted to 97% in the first half of 1989,
the same as in 1988. Private sector expenditure
on plant and machinery grew by about 6% in the second quarter of 1989, down from 17% in the first quarter. The corresponding growth rate
for 1988 as a whole was 13%. Public sector
expenditure on plant and machinery has been
subject to considerable fluctuations. Having
increased by 21% in the first quarter, it
declined by about 29% in the second quarter of
1989. For 1988 as a whole, an increase of 47%
was recorded.
G.F. 326
CONFIDENTIAL