With regard to final demand, net exports (real exports minus real imports) continue to decline, reflecting not only a slowdown in overseas economies but also sluggish demand for IT-related goods. Business fixed investment is also decreasing noticeably while exporting conditions continue to deteriorate. Housing investment remains sluggish and public investment is declining.
Politicians’ unwillingness hitherto to embrace further steps towards a more centralised fiscal policy might have something to do with the major political obstacles I mentioned earlier on.