Growth has continued to pick up over recent months. Substantial government stimulus is lifting domestic demand more vigorously than previously anticipated and currency depreciation is supporting exports. Yet, weak external trade demand, geopolitical uncertainties and impaired private balance sheets are projected to keep GDP growth at around 3%, well below potential growth which itself has weakened and which may decline further due to increased policy-related distortions in the economy. Investor confidence remains fragile and investment has declined sharply.