GDP growth remained stable at over 7 percent in 2007 and this is expected to continue into 2008. However the inflation rate has been climbing in recent months. While it had fallen to 4.5 percent in 2007 (down from 6.8 percent in 2006), inflation rose again to around 7.7 percent in March 2008. The government’s fiscal position continued to improve in FY2006/07 owing to higher-than-targeted revenue collection and lower-thanplanned expenditures, while implementation of the public finance management (PFM) reform agenda has been steady. Although the legal framework is in place to support greater international trade and private sector activity, implementation remains incomplete.