Economic Survey 1996

Abstract

The single digit level of inflation attained in 1995 is expected to be maintained in 1996, as evidenced by movements in consumer prices during the first quarter of 1996. The domestic economic growth in 1996 will necessarily continue to come from increased agricultural and industrial production. Similarly, the structural shift towards the trades and services sectors is expected to continue into 1996. This will be due in part to increased trade liberalisation and relative ease of entry into the informal sector by a large number of entrepreneurs. The continued liberalisation of the agricultural sector is expected to boost agricultural output provided that inputs are readily available and at affordable prices. Production of major export cash crops such as coffee, tea and horticultural products is expected to increase on account of good weather and prevailing fairly good world market prices. Value added for agriculture in real terms is therefore expected to grow by 5.3 per cent in 1996, up from 4.8 per cent recorded in 1995.