Political instability threatens sound economic performance

The economy performed very strongly in the first half of 2004. In the first quarter, the GDP rose by almost 7% year-on-year, outperforming expectations and forecasts alike. As expected, growth slowed a bit in the second quarter although at 6.1% it still came in slightly above analysts’ predictions made just prior to the publication of the economic performance figures. Earlier forecasts, from the beginning of the year, had suggested economic expansion in the neighbourhood of 4.5% in the first two quarters; in fact economic growth rate recorded for the first half of the year stood at 6.5%, doubling the previous year’s figures.