1
G.F. 326
Table 1
t
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estimates showed growth rates of 11 % and 23%
respectively). This strong upsurge followed a modest growth of 4% in real terms in the first quarter and a decline of 6% in real terms in the
second quarter. For 1986 as a whole, the growth
rate in real terms was 8% (Table 1).
5.
Putting these figures in perspective,
despite a small decline recorded in 1985, 1984,
1985 and 1986 taken together recorded the highest
ever average annual investment in plant and machinery. Further, it seems likely that the growth momentum achieved in the latter part of 1986
will continue for some time in 1987. Capital
investment in plant and machinery is predominantly
undertaken by the private sector, with its share in
1986 amounting to 98%, compared with 96% in 1985.
Investment in plant and machinery by the public
sector declined by 30% in real terms in 1986, as
against an increase of 9% in real terms for the
private sector. There was, however, a sharp recovery in public sector investment in the fourth
quarter of 1986.
Table 2
6.
(b) Retained imports of all capital goods
Subject to certain statistical
limitations, retained imports of capital goods can
be used as an indicator of investment in plant and
machinery. In the first quarter of 1987, retained imports of capital goods increased by about 19%
in real terms over the same quarter last year
(Table 2). This growth rate was somewhat lower
than the 28% achieved in the fourth quarter of 1986, but compares favourably with the growth rate
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