Oxford Economic Country Briefings, November 21st, 2006
Highlights and Key Issues
* Economic growth in the near term is at risk of being derailed by political instability ahead of national elections in January. Opposition political parties have taken to organising strikes and blockades. However, in the longer term, the odds are on a continuation of prudent macroeconomic policies. Real GDP in 2007 is likely to pick up slightly to 6.0%
* Inflation is creeping higher and further monetary tightening is required. So long as interest rates are raised, annual consumer price inflation should stabilise at 6.5% and then begin to fall in 2007 and 2008.
* I...
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