GDP growth in 2007 is projected to grow by 5.6%, a slower growth from 8.5% in 2006. The agricultural sector is expected to continue leading this growth due to the on-going fertilizer subsidy program coupled with the current favourable rains. By December 2006, inflation rate had decelerated to 10.1 percent.
In January 2007, the rate of inflation dropped to a single digit of 9.6 percent and it is expected that it would continue dropping further. This is mainly premised on the high food supply situation in the country (especially maize), that is expected to have a restraining effect on food inflation, which normally accelerates during this time of the year.