Economic activity in a regular economic cycle is mainly driven by consumption, spending, and investment. Consumption especially is a lubricant that oils the wheel of this economic cycle and makes it revolve efficiently. One of the weaknesses of our economy is lack of spending and propensity to consume. This is because the high inflation and low per capita income which is around $16000 makes the case for a lower consumption. Since the shrinkage of output levels results in lower employment levels and thus lower spending/consumption. The current situation is that the investment is LSM (Large Scale in Manufacturing) is showing a decreasing trend evidencing a reduced manufacturing activity. This will impact the output and ultimately GDP growth adversely and hence the hampered economic growth.
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