The attraction of higher growth made it easier to access foreign sources of funding. The corporate sector also generated higher internal resources through enhancement of its own retained earnings. This was made possible by greater profitability reflecting improved productivity, lowering of tax rates as well as lower debt servicing costs enabled by lowering of nominal interest rates.
2 The reduction in nominal interest rates, in turn, was facilitated by the moderation in inflation brought about by prudent fiscal and monetary policy. The reduction in the overall interest rate structure also enabled the Government to reduce its debt servicing burdens, which partly contributed to a step-up in public sector saving.