Assessment and recommendations I. The current economic cycle in perspective -A policy-induced mid-cycle correction -Short-term prospects -The medium-term outlook II. Macroeconomic management -Monetary policy -Budgetary policy III. Structural policies -Microeconomic reform to date: an overall assessment -Recent progress -Unfinished business IV. Financial sector reform -Objectives of the reform -Nature of the reform -Outcomes of the reform -Lessons from the reform and scope for further action Bibliography Annexes -I. Estimating potential output -II. Some illustrative scenarios for economic growth -III. Recent changes to the tax system -IV. Key financial sector reforms -V. Chronology of main economic events Statistical annex and structural indicators