Investment in an increasingly uncertain global landscape

Key takeaways

• Private business fixed investment has fallen or remained flat in advanced economies for decades, with a recent levelling-off also observed in several emerging market economies.
• The recent increase in uncertainty due to trade tensions will dampen investment while also reducing the effectiveness of monetary policy.
• In the long run, the outlook for private business investment depends on the potential need to reconfigure supply chains disrupted by higher trade tariffs as well as governments' efforts to boost public investment and implement structural reforms.