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Essay text:
The economy is also likely to
suffer from a lack of effective policymaking, owing to the political strife.
• The budget for fiscal year 2008/09 (July-June), released on June 11th, seeks to
reduce the growing fiscal deficit by raising taxes and easing subsidies on food
and fuel. However, the latter move will aggravate inflationary pressures.
• The Economist Intelligence Unit has raised its forecast for consumer price
inflation. We now expect inflation to average 13.7% a year in 2008-09, up from
11.8% previously.
• We estimate real GDP growth (by expenditure) to have slowed to 3.6% in
2007/08, from 6...
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