Percent
16.0
14.0
12.0
10.0
88
8.0
6.0
4.0
2.0
0
-2.0
THE ECONOMY
Domestic demand
(year-on-year growth rate in real terms)
Investment demand
in terms of GDFCF
Private consumption demand
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
In 1995, domestic demand was underpinned by continued strong growth in investment demand, but consumer demand moderated further.
1995
58
Gross domestic fixed capital formation, as an overall measure of investment demand, recorded a further growth of six per cent in real terms in 1995. The in- crease in 1994 was 14 per cent. Among the major components, the growth rate of expenditure on machinery and equipment accelerated markedly to 20 per cent in 1995, from 16 per cent in 1994. This was attributable to the on-going trend of office automation, intensive infrastructural construction and increased local production. Expenditure on building and construction registered virtually no change in real terms in 1995, having surged by 16 per cent in 1994. There was intensive work in the public sector, particularly in regard to the construction of the new airport and its related infrastructure. Work on the public housing programme continued apace but activity in the private sector slackened along with the consolidation in the property market. Private consumption expenditure rose by one per cent in 1995, down from the six per cent increase in 1994. The setback was concentrated in higher-value items such as motor vehicles and other consumer durables. Expenditure on ordinary consumer goods and on various consumer services still recorded some increases, albeit less rapid than in 1994.
Government consumption expenditure (in national accounts terms) rose by four per cent in 1995, broadly similar to 1994. There was a further large accumulation in stocks during the year, contributed mainly by materials for production and construction.
The Labour Market
The seasonally adjusted unemployment rate and the underemployment rate in the fourth quarter of 1995 stood at 3.5 per cent and 2.3 per cent, respectively, compared