Private investment continued on an upward trend, rising from 6.5% year-on-year growth in the fourth quarter of 2024 to 8.8% in the first quarter of the current year, the
"Private investment benefited from a favorable business confidence environment: companies' 3- and 12-month expectations regarding the economy and the sector continued to recover and remained in optimistic territory," the issuing entity stated.
"Similarly, a continued decrease in lending interest rates was observed, especially those for corporate and large enterprise loans. This financial environment contributed to strengthening private investment decisions, reflected in the quarter’s growth," it added.
The BCR noted that the reduction in inflation, along with increased employment and income, has allowed households to gradually restructure their consumption basket, increasing spending on self-construction.
"Non-residential investment rose by 11.1%, in line with the 24.6% year-on-year growth in the volume of capital goods imports," the issuing entity explained.
"Meanwhile, residential investment reversed the contraction observed over the previous 10 quarters and grew by 2.8%, driven by a recovery in self-construction, which in turn reflected an increase in real income," it concluded.
(END) NDP/CNA/JMP/MVB