Strain in economic conditions and continuous bribery and illegal activities hampered the conduciveness of economic growth. This reiterates the fall in GDP growth and per capita income in rural areas. Constant change in ruling party also dampens investors’ confidence to pursue economic interest in the country. Also, with the withdrawal of foreign direct investment and transnational corporations, external balance deteriorates due to lesser capital inflow. This translates into a higher SSX to about 15 - 20%. This is justified by the increased risks which potential investors will have to borne to invest in such conditions. As such, with higher risks, investors should be rightly compensated with a higher return.
Higher cost of treating waste and pollution alongside higher cost of healthcare increases susceptibility to diseases. This could result in a further decrease in population following the exodus of illegal migrants into richer countries. Economic downturn, thus results in a surge in unemployment rate, which in turns causes deflation. Hence, CEX is likely to fall to -5 – 0%.