"The mission concurs with the authorities that maintaining price stability over time and laying the ground for sustained growth require also a tightening of fiscal policy.
The government has already begun implementing a medium-term fiscal consolidation and reform program to reduce the budget deficit by at least 1 percent of GDP annually for five years through a mix of revenue and expenditure measures.
The full and timely implementation of this program should put the public debt/GDP ratio on a sustainable path and at the same time enhance the efficiency of public spending.
Given the current favorable economic environment, the mission is of the view that a more ambitious fiscal consolidation path is feasible without compromising economic growth.
The mission agrees with the authorities that private investment is key to lifting the growth trajectory and creating jobs.
Macroeconomic stability will contribute to an investment-friendly environment, and the recent tax and customs reforms will enhance incentives to invest.
But ease of entry and exit, clear rules and regulations, the absence of red tape and bureaucratic constraints, and strong supervisory and legal frameworks are also essential.
Continued reforms in these areas will complement the efficiency gains arising from the ongoing financial sector reforms and privatization.
International Monetary Fund
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