Parallel reforms in the judicial system promise to create a more reliable rule of law in the coming years. The capitalization program has succeeded in promoting steady rates of growth of private investment and savings, principally from the United States and in the hydrocarbons sector. This investment portends enhanced prospects for economic growth in the coming years. The government projects that the economy will grow by 2 percent in 1999, with inflation in consumer prices dropping to about 2.5 percent. Macroeconomic indicators have improved steadily since the government undertook stabilization and structural reforms in the mid-1980s.
Net reserves are more than seven months of imports.
Despite continuing improvements in tax collection, the budget deficit for the non-financial public sector increased to 3.3 percent in 1997, and to 4.1 percent in 1998, largely as a result of pension reform. This figure is expected to remain level through 1999. M2 has decreased significantly since 1996 reaching negative levels during the first nine months of 1999. Dollars are a legal means of exchange, and contracts can be written in dollars. Banks offer dollar accounts and make loans in dollars.