The real GDP growth is estimated at 6.9% yoy in 2008 backed by strong real private final consumption expanding. At the same time, capital accumulation is estimated to grow moderately during the entire 2008.
High inflation is the major risk for economic development in 2008 and 2009 as it hurts purchasing power and endangers overall macroeconomic stability in the country. Another risk is related to the international financial market turmoil, which will result in deceleration of the net inflow of foreign capital into banking sector, adversely affecting the part of investments and consumption financed through bank credits. Moreover, political turbulence poses an additional burden on the economy, negatively affecting investment activity in the country.
