Domestic Economy As the Honourable Minister indicated in the 2017/18 Budget Speech, the domestic economy is forecast to grow by 4.2 percent, an improvement from the estimated 2.9 percent for 2016. Furthermore, the budgeted 6.5 percent expansion in government spending, in 2017/18, should continue to be supportive of domestic demand.
Government spending comprises elements that generate  both  short-term  growth  supporting  demand  and  expansion of productive capacity which, potentially, should sustain future growth prospects. The exchange rate policy will continue to complement the monetary policy framework and it augurs well for maintenance of international  competitiveness  of  domestic  industries  and  macroeconomic stability.