Given that the negative global growth outlook is likely to persist for some time, and we need to be mindful that the prevailing financial crisis has already lasted five years, with no end in sight, the challenges facing the domestic economy are daunting. But not all of our problems can be ascribed to these global factors.
There are numerous underlying structural problems in the economy which are exacerbated, but not necessarily caused, by these global developments. In line with the weak and deteriorating global outlook, the Bank has been progressively downgrading its economic growth forecasts over the past year. Growth in 2012 is expected to average around 2,7 per cent, down from 3,1 per cent in 2011.