Government’s effort to achieve an inflation target of 11.2% and economic growth of 6.3% for year end 2017 seems to be gaining traction as consumer price inflation falls gradually. The Consumer Price Index has dropped consistently over the last sixth month by 40bps from 13.2% to 12.8% in March 2017.
The macroeconomic variables are moving in the right direction, as inflation and exchange rates steadily drops on the back of strong fiscal incentives that have been put in place to enable a profitable business environment.
In addition, government’s commitment to continue with the IMF program and stability of the power supply competitively positions the economy to attain its key targets.
The power stability and relatively low figures in the inflation rate, as well as slopping exchange rates provides a climate that is more favorable to sound, sustained economic growth and job creation. Moving forward, we expect the favorable movements of these key macro-economic indicators to continue its downward trend, further creating room for economic growth.
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