By 2050 the share of the population above the age of 64 to the population between 20 and 64, currently at 0.31, can be expected to rise to 0.55. The consolidation of public finances is not an end in itself but rather an economic necessity. Rising interest payments on today’s deficits constrains the government’s leeway in the future.
In the corporate sector, restructuring is gradually improving profitability to some extent and some firms in high-growth sectors are inclining toward increasing capital spending. Many firms, however, are very likely to maintain a cautious stance toward fixed investment based on their modest prospects for sales.