James Buchanan, Honorary President of the Walter Eucken Institute, who died recently, correctly noted in 2009 that “Unfortunately, economists, generally, failed to understand that aggregate variables that may be measured with tolerable accuracy ex post may not be variables subject to control, directly or even indirectly.” Apart from that, just because something is old, it doesn’t necessarily mean that it is also outmoded.
An increasing trend on both consumer confidence and household expectation is expected to generate higher private expenditures and subsequently higher private consumption. In parallel, total investment, including private investment, is forecasted to grow substantially to around 13.5%. In line with the established democratic government and a more conducive investment climate driven by infrastructure development programs, the private investor confidence is expected to increase.