The efforts by the Chinese government to control inflation, which remained above the government mandated 4% for the most part of 2011 and early 2012, hurt the construction sector of the country by dampening investment.
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But he said he was against one of the key issues the ICB is examining - that of splitting a bank's retail operations from its investment arm - saying that a lot of the banking sector's problems were caused by simple bad investment decisions.
Paced by real estate investment trusts, the financial sector has accounted for 11 of 32 U.S. IPOs according to Ipreo.
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To understand why, one needs to focus on an accounting relationship: by definition, the sum of net private-sector saving (saving less investment) and public-sector saving (the budget balance) must be equal to a country's current-account balance.
However, by taking capital out of the private sector to finance increased government spending, stimulus can reduce capital investment, and thereby GDP and employment.
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Core private-sector machine orders - seen as a key indicator of corporate investment - were down by 4% from 2006.
That means the millions of privately held companies have played a major role in business investment and manufacturing by the private sector as a whole since the recession.
Pernick and Wilder chart this migration over the past half decade or so by tracking several trends, including public and private sector investment, installed solar and wind capacity and similar signs of scale.
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Opposition parties, led by the Bharatiya Janata Party (BJP), say opening the retail sector to foreign direct investment will put tens of thousands of small businesses and corner shops out of business.
The proof is in the pudding on this point: every dollar of public-sector funds received by these projects was being matched by nearly four dollars in private-sector investment toward buying and installing the systems that generate on-site electricity and use waste-heat created during generation.
Total investment in infrastructure, including that by the private sector, was estimated at just 3.9% of GDP in 2007, compared with about 10% in China and Vietnam.
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