Skip to main content

Surge in non-mining investment unlikely

The capex survey for Q4 showed capital expenditure falling sharply at the end of last year. And while mining firms’ first estimate for capital spending in 2020/21 was very strong, non-mining firms are less upbeat. Indeed, the weakness in business sentiment and profitability suggests that investment spending will fall at least until the middle of this year before rebounding. Meanwhile, we now estimate that the government will run a $1 billion deficit this year which reduces the chance that the government delivers a large stimulus package in response to the coronavirus outbreak.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access