Inflation Rises As Oil Flows

BMI View: BMI has raised its 2006 GDP growth forecast to 31.8%, as the economy shows no sign of slowing down quickly. Inflation, which recently touched above 10%, remains a key risk, as the authorities struggle to cope with massive inflows of money to the energy sector. That said, we retain our core view that the inflation threat can be contained with careful fiscal and monetary management, and view the risks to economic stability to be minimal in the medium term.

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