With the notable exception of the fixed investment forecast, our revised outlook for the major GDP components is largely unchanged compared to January. At a projected 5.1% during 2012, fixed investment is now expected to increase 0.6% pts faster than forecast in January. The impact is to push the growth in gross domestic expenditure, the broadest measure of demand in the economy, above 4% (4.1%) from 3.9% in January. Some of the increased fixed investment will be reflected in higher imports (which subtracts from growth). Therefore, the higher fixed investment only has a marginal impact by pushing the 2012 GDP growth forecast up to 2.9% from the 2.8% expected in January. The growth outlook for 2013 has remained unchanged at 3.6%.

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