Strong activity in the private sector continues to boost the economy and GDP growth is expected to remain above 6% in 2006 and 2007. While the public deficit is projected to shrink further, the current account deficit is likely to stay at historically high levels. To maintain growth on a sustainable path, domestic and international confidence must be preserved. Policies should ensure the credibility of macroeconomic policy institutions; make sure that the regulatory framework can cope with potential financial risks; and improve enterprises’ competitiveness by accelerating the programme of microeconomic reforms.