Business fixed investment is expected to be supported by the improvement in corporate profits to date, but a noticeable recovery is unlikely for the time being due to, among other things, substantial uncertainty regarding the overseas economy.
This may reflect capture by the regulated entities, which tend to evaluate most growth developments favorably, including unsustainable credit expansions. Alternatively, reluctance to act preemptively may result from the authorities’ preference to react only after a bubble collapses.