ECONOMY

Decline expected in industrial investment

Decline expected in industrial investment

Investment in industry will decrease instead of expanding this year, according to the latest estimate published on Wednesday by the Foundation for Economic and Industrial Research (IOBE).

While IOBE’s previous survey had pointed to a 31.5 percent increase in industrial investment, the new survey, which factors in data from March and April, sees investment shrinking 1.1 percent from 2018.

The general economic climate, the impact of taxation on earnings and the availability and cost of funds remain the main reasons investment will be hindered this year too.

Last year, according to the estimates of enterprises, investment spending in manufacturing slumped 6.9 percent from 2017.

Investment is expected to grow in food-drinks-tobacco by 8.5 percent, in chemicals by 22.9 percent and in non-metallic minerals by 36.4 percent.

Apparel will see a decline of 31.8 percent and textiles will suffer a 9.2 percent fall in investment, IOBE forecast.