In 2014, gross fixed capital formation contracted by 0,4 per cent, driven mainly by the 3,4 per cent contraction in investment by the private sector, which accounts for just under two thirds of capital formation.
On a more positive note, in the second half of the year growth was positive, a reversal of the strongly negative trends observed in the first half of the year. However, supply side constraints and low confidence are likely to constrain stronger growth. It is worth noting that the more favourable fixed investment outcomes observed in 2013 were mainly related to renewable energy projects.