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Moreover, the housing sector is experiencing a severe downturn. Property investments plummeted by over 10%, showcasing the ongoing ramifications of a housing bubble gone bust. This lack of stability in real estate further complicates the recovery, hampering growth in manufacturing and other sectors more reliant on consumer confidence.
Compounding these issues, continued deflation—specifically a second consecutive year of declining prices—has led to bleak forecasts. A lack of consumer spending and a growing reluctance to take on loans signal widespread unease about the economic future.