One excerpt that should say it all:
First Question: Is macro economic management reasonably balanced?
The answer is obviously yes – by and large. We have no excessive current account surplus or deficit; no excessive dependence on exports or external demand; no excessive reliance on investment or consumption expenditure; and, no excessive leverage in most households or corporates or financial intermediaries.
We are, however, vulnerable to shocks on four fronts: Fuel; Food; Fiscal; and Finance – external. In regard to fiscal, the quality of management and subordination of monetary policy continue to be issues. On external sector, the quality of capital flows will continue to be an area of concern. In particular, quality of FDI (Foreign Direct Investment) also deserves a close look, in terms of extent to which FDIs are financing green field projects.
Bingo.
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