However, now that we all have several years’ experience with this system, firms have told us that they would be able to engage in more thoughtful capital planning if they had knowledge of that year’s stress test results before finalizing their distribution plans for the upcoming year.
Then in the operational phase, sectors such as manufacturing will face considerable competition from imports and will be harmed by the appreciation of the real exchange rate. Traditional agriculture (food, fruits and vegetable) sub-sector will fare well under increased aggregate income and demand. The export agriculture sector (coffee, cocoa, palm oil, copra, forestry) will be harmed by the real appreciation (Dutch Disease).