Significant trade and industrial reforms have been instituted for more than a decade now. While the economy has been growing by more than 6%, there are recent indicators that cast doubts over the optimism on the reforms. In light of the recent developments, this paper discusses the impact of these reforms on the aggregate level and on the manufacturing sector. It also examines the industrial performance of the past years and during the first two quarters of 1997. Using the trends, an analysis of the role of exchange rate is presented.
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