Public investment decline to slow because of supplementary budget outlays

Real public demand was roughly flat in Apr-Jun, at an annualized -0.2% QoQ (Figure 13). The fall in public investment shrank to -2.0% QoQ annualized because of more outlays made related to the FY2013 supplementary budget passed in February besides an increase in government final consumption expenditures primarily for the expansion of medical expenses and care costs as a benefit.

Public investment expected to turn positive, but not to last

Public investment is likely to remain high and to turn positive in Jul-Sept, bolstered by the FY2013 supplementary budget spending. However, the FY2013 supplementary budget is small in scale compared to the FY2012 supplementary budget, which supported expanded public investment. As a result, public investment is not likely to continue rising over an extended period.