“This BIDPA Briefing issue looks at the annual performance of the economy over the period from 1992/93 to the first half of 2003/04. Over the period, there has been a gradual transformation in structure of the economy. There is also evidence of the economy facing weakening economic fundamentals. The mining sector, on which the economy depends heavily, is not expected to be a major engine of growth. This calls for an added effort to stimulate the development of alternative sectors that can provide jobs and a sustained increase in incomes. The Briefing also discusses inflation issues following the falling out of VAT from the calculation of the consumer price index last year. There are other inflationary pressures; and in this Briefing the two domestic economic developments are considered : (devaluation and the public sector salary increase) that will have a
bearing on inflation.”
