high inflation expectations is also essential to lower gold imports—gold imports have been a key
factor behind the recent deterioration of the current account deficit. In addition, while fiscal
consolidation can lend support to monetary policy in fighting inflation and thereby reduce the
current account deficit, reforming fuel subsidies will directly help in lowering imported-oil demand.
Actions on alleviating supply bottlenecks remain a top priority, not only to lower natural resource
imports, but to also promote capital formation and raise potential growth.