Due to severe seasonal flooding, economic growth slowed slightly in 2000 to 4.5 percent. With greater political and macroeconomic stability, the Government is focusing on accelerating socioeconomic development.
Future prospects depend on expanding tourism, the area under cultivation, and the garment sector.
Recent Trends and Prospects Severe seasonal floods hampered otherwise good economic performance in 2000, slowing real GDP growth to an estimated 4.5 percent from 5.0 percent in 1999. A contraction in agricultural production is estimated in 2000. This was due to loss of crops in the floods as well as poor forestry performance, which stemmed from the reduction in the legal limit of timber that could be felled. Robust growth in tourism continued in 2000, contributing to an estimated moderate expansion of the services sector. Since 1997, droughts, political volatility, and the Asian financial crisis have hindered broad-based economic development.