Economic growth has eased slightly, to 10.6% year-on-year in the first quarter of 2008. It is expected to slacken further over the remainder of 2008 and in 2009, as the contribution from net exports declines, and the current account surplus is set to fall to 9½ per cent of GDP by 2009. Domestic demand growth is projected to remain robust over the forecast horizon, with buoyant incomes driving up consumption. Inflation has increased sharply, driven by soaring food prices, but is expected to ease somewhat going forward provided food prices stabilise, offsetting rising non-agricultural prices.