State of the Economy: Growing Macroeconomic Imbalances

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The Review represents the efforts of SPDC to objectively present the situation with respect to the state of the economy. It points out the improvements in economic performance and an increase in the economy's sustainable rate of growth over the past few years, which are in part a result of the improved macroeconomic policy environment. It also highlights, however, the growing macroeconomic imbalances that manifest themselves in the form of a huge trade deficit, an increase in the fiscal deficit and the failure of inflation to recede at an acceptable pace. It is important to recognize that unless checked, these imbalances threaten the substantial gains that have been made in recent years. The Review also argues that for growth to translate into development to a greater extent, much more progress has to be made in reversing the growing income disparities and other inequalities.