Economic Outlook 2007 December
Towards a new balance?
Since our last report, there have been two major trends in the economical policy arena. First, the Central Bank went to an aggressive cut in interest rates well before the expected time. Secondly, the government reduced the targeted primary consolidated government sector surplus from 6.5% of GNP to 5.5% of GNP. Considering the surplus in 2007 this report indicates that there will be a tightening of fiscal policy in 2008.