After growing very rapidly in the first half of the year, GDP slowed somewhat in the second half as fiscal and monetary policy exerted a dampening impact on activity. Nevertheless, growth in 2006 may still be around 10.5%. The moderate slowing is projected to continue in the first half of 2007 as export growth slackens and the impact of policy tightening is felt, but thereafter growth may pick up again, resulting in the economy growing in line with potential of somewhat more than 10% by 2008. Despite imports accelerating and exports slackening, the current account surplus is projected to rise continuously, reaching $285 billion (8.8% of GDP) by 2008. As supply increases in line with demand, inflation will remain subdued at 2% during the projection period.