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Economics & Trade

Fixed asset investment slowing

The government said that spending on fixed assets in November showed efforts to prevent the economy overheating were working.

Expenditure on infrastructure such as roads and power plants was up 25.3% on a year earlier, extending an easing trend that began in the second half of 2003 after several months that showed annual growth above 30%.

The investment rise for November was greater than October, when the spending was 22.6% higher than a year earlier. But it was still below the 26.5% increase in September and 30.7% in August.

Investment growth has been cooling thanks to measures by the central bank to stem a flood of easy credit, and it is expected to further ease in 2004 as the government cuts state funding for highways, bridges and other projects.

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