Investments still dynamic, but losing steam

beruhazasEN_excel_11.28As expected, the pace of investment growth moderated in the third quarter of 2014, although the recorded growth rate (16.3%) is still respectable. It must be pointed out though, that the slowdown was primarily due to the deceleration of the business sector: business investments grew only by 11.8% in Q3, a considerable loss of momentum vis a vis the 24%, posted in the second quarter. Notwithstanding, the growth rate of public investments leapt to 30% from 16,3% in Q2.

The deceleration in the business sector is mainly due to the cutback of manufacturing investments, which are still driven primarily by automotive-related manufacturing branches. Manufacturing investments expanded by 10.8% in Q3, as opposed to the 33.3% posted in Q2. The high growth rate in public procurements, on the other hand, was fuelled by an acceleration in public administration investments (driven by public building renovations and developments in disaster management and law enforcement) and the explosion of investment growth in water supply, sewage and waste management. As a result, manufacturing lost its position as the leading factor behind investment growth, replaced by transportation.