Send Print Tweet

Following two years of deep recession, the economy returned to buoyant economic growth in 2011. The recovery, which is being led by private consumption and business investment, is projected to moderate, with growth easing to 2¾ per cent by 2013. Inflation should fall but remain above the authorities’ target in 2013.

The government should ensure that it remains on track to meet its fiscal objectives and pass the proposed law to strengthen the fiscal framework. Monetary policy should be gradually tightened to reduce inflation and support capital account liberalisation. Prudential rules and supervision, including macro-prudential arrangements, should be strengthened.