Macroeconomic conditions have improved in 2025, with a more stable exchange rate and easing inflation. Growth is projected at 4.2% over the year, driven by tourism, transport, and steady expansion in energy, mining, and manufacturing. Growing external demand has boosted exports, offsetting impacts from fiscal tightening. Headline consumer price inflation averaged 8.5% over the first ten months of 2025, down from 24.5% a year earlier. This has reduced pressure on private consumption and stabilized investor sentiment.
Part A: Recent Economic Developments and Outlook
- A sizable current account surplus has been made possible by merchandise exports, tourism, and transport services, which are helping offset debt repayments. Strong…