Taking a look at the corporate sector, business sentiment has been improving on the back of firm private demand, although the pick-up in production has been moderate partly reflecting a large cut in government expenditures.
We can also decrease imports which are rising fuelled by the increase in oil prices. To raise exports Government is implementing a new national export strategy. But this will take time. In the meantime, we must try to slow down the growth of imports. The Reserve Bank has therefore raised interest rates.