In 2011, the economy continued on the high-growth trajectory of the previous seven years. Growth has been broad-based, with the services and the industrial sectors growing at the highest rates. This momentum is expected to continue in 2012 and 2013, albeit at a slower pace. The five-year Growth and Transformation Plan (GTP), however, which emphasises agricultural transformation and industrial growth, projects the economy to grow at much higher rates. In the 2010/11 fiscal year (8 July – 7 July), macroeconomic management failed to reduce inflation, which was driven mainly by escalating food prices. Both domestic and exogenous factors were responsible for causing the resurgence in inflation. These include a loose monetary policy, rising prices of imported inputs, malfunctioning of the domestic market, and supply shocks. However, inflation is expected to decline notably in 2013 owing to continued macro stabilisation efforts. The government has been pursuing prudent fiscal policies which have focused on boosting domestic revenue mobilisation and reducing domestic borrowing.