Why Is Global Business Investment So Weak? Some Insights from Advanced Economies

Robert Fay, Justin-Damien Guenette, Martin Leduc and Louis Morel
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Louis Morel: Bank of Canada, https://www.bankofcanada.ca/

Bank of Canada Review, 2017, vol. 2017, issue Spring, 56-67

Abstract: Various drivers of business investment can be used to explain the underwhelming performance of investment in advanced economies since the global financial crisis, particularly since 2014. The slow growth in aggregate demand cannot by itself explain the full extent of the recent weakness in investment, which appears to be linked primarily to the collapse of global commodity prices and a rise in economic uncertainty. Looking ahead, business investment growth is likely to remain slower than in the pre-crisis period, largely because of structural factors such as population aging.

Date: 2017
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