Weak Private Sector Lending To Hold Back Growth

We maintain our 5.4% real GDP growth forecast for 2010 in spite of the somewhat stronger-than-expected 6.2% y-o-y GDP expansion recorded in Q409. This is largely due to our expectations that high government borrowing and weak balance sheets at banks will continue to hold back lending to the private sector. We expect economic growth to accelerate to 6.1% and 6.5% in 2011 and 2012 on the back of strong capital investment.

To read the full article, please choose one of the following options: