As a result of fiscal stimulus and currency depreciation, inflation increased to 10% in 2015. Domestic demand would continue to support expansion, as merchandise exports and remittance inflows are likely to be weak amid low global prices for oil, gold and cotton as well as subdued economic activity in other subregional economies. Prudent macroeconomic management in past years, as reflected in favourable fiscal positions and large external buffers, helped to enhance the country’s ability to respond to external shocks. Nonetheless, further efforts are needed to accelerate privatization and promote a more diversified, private sector-led economy that can generate productive jobs and sustain inclusive growth.