Investments: drastic slowdown

investmentgrowth_02_2015matheikaIn the fourth quarter of 2014, investments grew by only 1.9%, a sharp slowdown compared to the average growth rate above 20% during the first three quarters. The slowdown was not unexpected, and it was in great part due to the statistical base effect: investments grew spectacularly in the last quarter of 2013. In 2014 as a whole, the annual average growth rate was as high as 14%, the year-end slowdown notwithstanding.
The high base effect can be easily discerned regarding the leading factors behind the slowdown: public investments and manufacturing. Public investments fell by nearly 17%, primarily due to the plummeting of investments connected to disaster management and law enforcement that saw an epic growth in Q4 2013. Similarly, manufacturing investments declined by nearly 4%; the decline was primarily driven by automotive investments, the leading growth factor back in late 2013.
Otherwise, business investments grew at a respectable rate of 7.1%, despite falling manufacturing investments. Overall