SLI's Milligan: Capex is what really moves the 'economic growth needle'

A harvest can be influenced by any number of factors – an unseasonably warm spell or an insect attack, perhaps. However, over the longer term, the age-old adage still holds: you reap what you sow. This principle can be applied to economies too, with investment a key determinant of the pace of future growth. Indeed, in the industrialised world, investment typically accounts for around 15%-20% of GDP, although in some economies it is much higher, at around 40%-50% in China, for example. Of course, public investment accounts for a larger portion of the overall share in some economies tha...