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2003, No. 12
Posted 2003-05-03

Waiting for the Investment Boom? It Might Be a While


One reason why growth of real business fixed investment has remained weak is that real GDP growth during the recovery has been weaker than normal, which is probably related to the mildness of the 2001 recession. Geopolitical uncertainties arising from the conflict with Iraq and tensions with North Korea may be another reason why business investment spending has been unusually weak.