<< Click to Display Table of Contents >> Navigation:  Finance and Economic Planning > CFSP > 2015-16 FY CFSP > RECENT ECONOMIC DEVELOPMENTS AND POLICY OUTLOOK > Risks to the Outlook

The  risks  to  the  outlook  for  2015/16  and  the  medium-term  include continued weak growth in advanced economies that will impact negatively on our exports   and   tourism   activities.   Further,   geopolitical   uncertainty   on   the international oil market will slow down the manufacturing sector.

Public expenditure pressures, especially recurrent expenditures, pose a fiscal risk.  Wage pressures due to increased recruitments, upward review of some allowances by SRC and inefficiencies may limit continued funding for development expenditure.

The impact of insecurity on tourism and depressed rainfall which could affect  exporta  aid  agricu tusal  production  rtspectively uremains  a  tist  to  the growth outlook. Appropriate measures to safeguard macroeconomic stability should these risks materialdze should be pursuad.