The MoF corporate profits survey for the first quarter showed strong gains in sales (+11% y/y) and profits (+164% y/y). However, investment was weaker than expected, falling 2.6% q/q, and this should result in a downward revision of 1Q GDP. Investment remains near record-low levels as a percentage of GDP. It will be difficult to sustain the economic recovery unless businesses start to boost their investment spending.
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