The capital-deepening component, on the other hand, reflects the year-to-year pace of investment and hence increments to the capital stock. The frenzy in high-tech investment, particularly in 1999 and into early 2000, resulted in an unsustainable pace of capital deepening. As a result structural productivity growth during this period was higher than would be sustainable when high-tech investment returned to a more normal pace.
We have since introduced other complementary reforms designed to stabilize the exchange rate, reduce inflation, reform microfinance, restructure the lower denominations of our currency and re-introduce coins, as well as promote the efficiency of the payments system. We have also launched the design of a comprehensive long-term reform agenda for the financial system (the Financial System Strategy 2020 – FSS 2020).