Economy

The speedy resolution of the current political stalemate will determine the direction of the economy in 2008 and, therefore, to a large extent the performance of the markets. We expect most sectors of the economy to sustain the 2007 performance in 2008 if the political stalemate is quickly resolved. The tourism and agriculture sectors have suffered considerable damage and may under perform in 2008.

Overall, we expect the economy to grow by 5.5% in 2008 compared to an estimated growth of 6.2% in 2007 assuming that a political settlement is found and normalcy is restored quickly . Economic growth could fall below this level if political settlement is not found quickly.

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