Global growth remained largely subdued in 2019. This stemmed from geopolitical factors, including the Brexit negotiations and trade tensions between the US and China. There are incipient signs of global recovery, though fragile, amid geopolitical tensions and rising threats of protectionism.
The recent outbreak of the Coronavirus in China also poses new risks to the global growth outlook, although its impact is yet to be assessed. The coordinated monetary policy responses of the major central banks to adopt accommodative monetary policies should enhance financing conditions for emerging market and frontier economies, with strong macroeconomic fundamentals.
On the domestic front, the pace of growth was strong during 2019, although slower than was recorded in 2018. The growth outlook is positive and is expected to be supported by the services sector, especially as the banking sector continues to grow stronger and resilient, as well as the continued implementation of growth-oriented programmes in the industry and agricultural sectors.
Headline inflation has remained in single digits since June 2018 and more recently converged around the central path of 8.0 percent. Also, the various measure of core inflation remains contained and inflation expectations well-anchored.