We can thus expect a reduction in consumer demand due to the “wealth effect” – the effect of a fall in the value of households’ assets on their purchases – and a decline in real investments resulting from the increase in firms' costs of borrowing in the capital market.
•  The Bank expects that a better balance between domestic and foreign demand will be achieved over time and that growth will become more self-sustaining. But this will take longer than previously projected. •  Real GDP growth is projected to increase from 1.6 per cent this year to 2.3 per cent next year and 2.6 per cent in 2015.