Further downward revisions in growth prospects. Concerned about the stagnant state of the economy observed from September through November, some panellists have undertaken further downward revisions to their growth projections for the last quarter of 2000. The dismal performance and the elections ahead have also negatively affected the outlook for 2001. The Consensus now sees GDP expanding very modestly. However, participants remain more optimistic about 2002, as growth forecasts have been revised upward a notch.
Inflation continues to fall.
The nose-dive in economic growth of the past months has helped enable the Central Bank to contain inflation. Price hikes in the housing, fuels and electricity as well as the transport and communications category drove the December price increase. Both categories were affected by strong increases in fuel prices, despite the downward trend in international oil prices in the latter half of December.