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A recovery in
investment and export growth in H2 lifted 2016 GDP growth to 1.7% on first estimates,
and the economy remains on track for expansion of just under 3% in 2017 and
then some 4% in 2018-20 as rising real incomes keep private consumption quite
strong despite the sharp pick-up in inflation that is now under way. Public
investment and FDI will continue to supplement private capital spending, which
will help to tackle the risk of cost increases from a tightening labour market
by boosting productivity growth.
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