The Reserve Bank reaffirmed its forecast for GDP growth in July 2006 in its First Quarter Review of the Annual Statement on Monetary Policy. The Reserve Bank revised upwards its forecast for GDP growth to around 8.0 per cent in October 2006 in its Mid-Term Review on the back of improvement in industrial outlook and expected sustenance of growth momentum in services.
Other agencies have also placed their growth estimates close to 8 per cent. Industry and infrastructure Led by manufacturing, the upturn in the industrial sector is entering its fifth year of expansion in 200607. Manufacturing activity has remained stronger than expected in the current fiscal year so far.