Whereas a downgrade was avoided in June, similar concerns are likely to re-emerge later in the year when the next reviews are scheduled. The domestic economy was characterised by a persistent slowdown during the past year, driven by weak consumption and investment expenditure growth. The agricultural sector was particularly hard hit by the worsening drought.
The economy grew by 1,3 per cent in 2015, and the outlook for the economy remains constrained, particularly following the contraction of 1,2 per cent experienced in the first quarter of this year. Nevertheless we expect that to have been the low point of the current growth cycle.