Oxford Economic Country Briefings, November 7th, 2006
Highlights and Key Issues * Full-year GDP growth is forecast to slow to around 6% this year from a provisional 6.9% in 2005. This primarily reflects the impact of drought on food and electricity supply and prices. In 2007, GDP growth should accelerate marginally to around 6.5%. * After peaking at 7.7% in May, inflation fell back quite sharply to 4.8% in August, reflecting the impact of the drought which is now dissipating. Inflation is forecast to average 5.6% this year after just 4.4% last year, with a further easing to 5% in 2007 assuming normal weather conditions. The fiscal deficit (incl...
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