This is due to the decline in revenues which enterprises are obtained from the reduction in sales of their products due to the decrease in the demand for the good service and they are households currently have a low purchasing power. This caused the company's profit decreased than before led to the decrease in investment needs as currently they have less profit, therefore less funds available for investment purposes and therefore less willing to invest. Moreover, with an economic recession, the expected profits in the future is not stable and investment takes time to see results, so that enterprises can find it risky to invest in that time and therefore decided not to do so. Moreover, most businesses will focus on surviving in the market in the short term by operating at the level of marginal revenue equal to marginal cost or higher. So, this results in significantly reduced the level of FDI injected into the economy affecting our economic growth as we are dependent on it.
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