Strong GDP growth is being led by exports, but is now expected to broaden. Headline inflation will remain high during 2004, as a result of a final step of administered price increases towards cost-recovery levels, but should decelerate significantly thereafter. Unemployment, although falling, will remain above 15 per cent. The recent reduction of policy rates by the central bank, in the context of ongoing fiscal consolidation, has helped to balance the policy mix. The ambitious reforms under way with respect to taxes, labour markets, public services, and social assistance have the potential to foster strong medium term growth and employment...