Economic Survey 1994

Abstract

The implementation of the reforms under SAPs have started generating some positive results including a fall in inflation, foreign exchange availability and lower growth in the money supply. During the second quarter of 1994, the country experienced the long awaited widespread rains after a prolonged drought. As a result, agricultural output is expected to register positive growth in 1994. Tea and coffee should record substantial higher production volumes. As the Government strives to fully liberalise maize marketing, ensuring adequate supply of high quality seeds and fertilizers, it is expected that maize production in 1994 will be better than in 1993. All these developments imply improved earnings to the farmer which will be reflected in increased consumption of manufactured goods; hence the manufacturing sector performance is expected to be good. As a result of liberalisation of foreign exchange controls, the manufacturing sector already has access to foreign exchange for purchase of industrial inputs. This also is expected to improve the overall growth of the manufacturing sector. The continued efforts in tourism promotion and restored international confidence are expected to boost tourist earnings in 1994.