Based on information gathered on the key sectors of the economy and the trends of the recent past, the government announced on Thursday that economic growth this year will exceed last year's 5.6%. However, when the sugar industry is factored out of the figures, growth in 2008 is forecast to be a more moderate 5.6%.

According to the latest issue of Economic Indicators, released on January 9, the main assumptions employed are that financial intermediation will expand by a further 7.6%, following the 7.3% growth in 2007, and that the hotels and restaurants sector will grow by 8%, with a forecast of 975,000 tourist arrivals for the coming year.

The government anticipates a close to normal sugar production this year of around 520,000 tonnes, while manufacturing industries are predicted to expand by around 5.5% compared to 3.5% in 2007.

Construction will grow around 3% this year after the high growth of 15% in 2007, which was mostly due to more construction of hotels and Integrated Resort Scheme projects, according to the government.