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December 8, 2017 www.intellinews.com I Page 10
are in sight for 2018 and the higher interest rates (via households’ indebtedness) will probably push down private consumption.
On the utilisation side, the private consumption demand was so strong — household consump- tion expanded by 12.3% in comparable prices — that it required supplementary net imports (2.3% of GDP in Q3, the highest share since 2012) and less inventory than last year was created in the quarter. Notably, the inventory kept rising, but as a result of the record crops that had not yet been exported or processed.
Gross fixed capital formation also (surprisingly) increased by 8.8% y/y — the second-largest increase in the past decade. The reasons for the capital accumulation is still unclear, but the
profits capitalised by foreign investors (and recorded as FDI) might be one of the sources. The 6% higher price index for goods and ser- vices involved in capital formation (versus a 1.4% rise in the average prices paid by households and the 4.2% GDP deflator) contributed as well.
On the formation side, the contribution of industry and services to GDP growth remained not much changed from previous quarters
at 1.8pp and 3.6pp respectively. Similar contributions were seen in the previous two quarters of the year. Agriculture stood out thanks to its 33.4% y/y increase in value added generated in the quarter. This dwarfed the still robust 7.8% y/y increase of industry and 9.7% y/y rise of services for households (both in GVA terms).
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