quarter of 2006 than in 2005. Investment accelerated sharply and industry is proving buoyant. Labour productivity has …. Macroeconomic stability will be maintained, though inflation is picking up; and is a serious problem in Serbia and Romania …. Inflation is a major concern in Turkey, as is macroeconomic stability more fundamentally. At the end of 2006 it should be …

nowadays much sounder than in the past (Hungary being temporarily an exception). The rates of inflation are quite low and … productivity and downward pressure on wages from excess supply of labour. The expectation of sustained growth is supporting growth … growing external borrowing, possibly associated with the growing presence of foreign banks. Inflation apart, the country …