Key developments and challenges

Long-term sustainable growth requires significant diversification and industrialisation. The challenge is to strike a balance between continued state investment in infrastructure, education and worthwhile industrial projects, while at the same time encouraging active private sector involvement to ensure an efficient allocation of available resources.

An effective resolution of non-performing loans, further improvements in prudential regulation and the development of local capital markets would help to ensure that the financial sector emerges stronger from the crisis and can better support the real sector in achieving sustainable economic growth.

Fiscal policy will need to reconcile the goals of supporting economic recovery in an uncertain external environment, attaining the country’s medium-term development objectives and prudently managing volatile oil and gas revenues.