World Bank2017-06-272017-06-272011-04https://hdl.handle.net/10986/27405The outlook for FY2011 has changed since the last macroeconomic update in October 2010.1 While gross development product (GDP) growths is still projected to be around 6.2 percent in FY11, inflationary pressures have strengthened and the external position has weakened. Rising energy and food subsidies are placing a strain on the budget, but higher-than-anticipated revenues and lower-than-budgeted Annual Development Program expenditures leave sufficient fiscal space for the government to react to these pressures. Progress on reforms is mixed, with advances made on Value Added Tax reforms, efforts to tighten liquidity and setting up a framework for public-private partnership projects. Developments on telecommunication policy, the Anticorruption Commission, and policy responses to stock market volatility are a cause for concern. The growth outlook for FY12 remains good but there are risks that need to be contained. Short-term risks include rising food and fuel prices, deteriorating remittances, an increased reserve drawdown, a growing quasi-fiscal deficit, stock market volatility and its potential impact on the banking sector. Long-term risks include the inability to sufficiently alleviate power shortages, raise public investment, and remove bottlenecks for private investment.en-USCC BY 3.0 IGOACCOUNTINGADVANCED ECONOMIESAGRICULTURAL PRODUCTSAGRICULTURAL SECTORBALANCE OF PAYMENTSBANK LENDINGBANK POLICYBANKING SECTORBANKING SYSTEMBASIS POINTSBENEFICIARIESBROAD MONEYBUDGET DEFICITBUDGETARY ALLOCATIONBUSINESS ASSOCIATIONSCASH RESERVECOMMERCIAL BANKSCOMMODITYCOMMODITY PRICESCONSUMER PRICECONSUMER PRICE INDEXCONSUMER PRICESCONSUMPTION EXPENDITURECONSUMPTION EXPENDITURESCORRUPTIONCREDIT GROWTHCREDIT SOURCECURRENT ACCOUNTCURRENT ACCOUNT BALANCECURRENT ACCOUNT SURPLUSDATESDEMAND FOR FOODDEVELOPING COUNTRIESDEVELOPING ECONOMIESDOMESTIC MARKETECONOMIC CRISISECONOMIC DEVELOPMENTSECONOMIC PERFORMANCEEXCHANGE RATEEXPENDITUREEXPENDITURESEXPORT CREDITSEXPORT GROWTHEXPOSUREFAIRFAIR PRICEFINANCIAL ACCOUNTFINANCIAL INSTITUTIONSFISCAL DEFICITFOOD DISTRIBUTIONFOOD FOR WORKFOOD GRAINSFOOD IMPORTSFOOD PRICEFOOD PRICESFOOD RESOURCESFOOD SECURITYFOOD SUBSIDIESFOOD SUBSIDYFOREIGN EXCHANGEFOREIGN EXCHANGE MARKETFOREIGN EXCHANGE RESERVESFOREIGN INVESTORSFORMAL BANKINGFROZEN FOODGLOBAL ECONOMYGOOD FAITHGRAIN PRODUCTIONGROWTH RATEGROWTH RATESHOUSEHOLDSHYPOTHECATIONSINCOMEINFLATIONINFLATION INDEXINFLATIONARY PRESSURESINFRASTRUCTURE FINANCEINFRASTRUCTURE PROJECTINFRASTRUCTURE PROJECTSINSURANCEINTEREST RATEINTEREST RATE CAPINTEREST RATESINTERMEDIATE GOODSINTERNATIONAL MARKETSINVESTMENT CLIMATEISSUANCELIQUIDITYLOANLOCAL MARKETMACROECONOMIC POLICYMERCHANTMICROCREDITMICROFINANCEMICROFINANCE INSTITUTIONSMIGRANT LABORMIGRANT WORKERSMOBILE PHONEMONETARY POLICYMONEY GROWTHMONEY TRANSFERMUTUAL FUNDNONPERFORMING LOANSOIL PRICESOPEN MARKETOUTPUTOVERDRAFTOVERDRAFT LOANSPHONE NETWORKPLEDGESPOLICY RESPONSEPOLICY RESPONSESPRICE INCREASEPRICE INCREASESPRICE TRENDSPRIVATE INVESTMENTPRIVATE SECTOR CREDITPUBLIC DEBTPUBLIC INVESTMENTPUBLIC STOCKPUBLIC STOCKSPUBLIC-PRIVATE PARTNERSHIPPUBLIC-PRIVATE PARTNERSHIPSRATES OF INTERESTREFUGEEREGULATORREGULATORSREGULATORY AUTHORITYREMITTANCEREMITTANCESREPAYMENTREPAYMENT PERIODREPOREPO RATEREPO RATESRESERVERESERVE REQUIREMENTRESERVESRETAILRETAIL TRADESALESSAVINGSSOVEREIGN DEBTSTOCK EXCHANGESTOCK INDEXSTOCK MARKETSTOCK MARKET VOLATILITYSTOCK PRICESTOCK TRADINGSTOCKSSTORAGE CAPACITYSUGARTAXTEATELECOMMUNICATIONSTRANSPARENCYUNIONURBAN AREASVILLAGEVULNERABLE GROUPWHEATReportWorld Bank10.1596/27405