Investment turnaround may lead to growth in 2022
Robust growth in private investment spending could lift the economy this year, helping to counter the impact of a slowing household sector and a bleak global backdrop, economists say. This comes after several years in which consumer spending has driven what growth there has been in the economy, while investment has declined. But economists caution that the turnaround in private investment is being driven mainly by spending to replace or modernise plants and machinery, rather than on construction projects – and progress on structural reforms is needed to sustain the investment boost.