We will now need to reassess this. Our earlier estimate for a 1.7 percent growth this year and 1.5 percent next year is under serious threat. We are however relieved by the fall in oil prices. Like many of you, we have introduced several fiscal measures to cushion the impact of the increase in oil and food prices.
But we basically cannot cushion their full impact given our balance of payments and debt position. We are relying on some demand management to help us reduce imports. Demand is already responding but the fuel import bill is still quadrupled our historical level. Inflation, at over 9 percent, is the highest in over twenty years. It presents considerable challenges to policy makers.