Context. Since the last Article IV Consultation in November 2013, macroeconomic stability has been maintained, supported by prudent policies under the recently-concluded Extended Credit Facility arrangement. However, private domestic demand and credit growth have been tepid, and export growth has slowed, as it has in other Asian countries. The real effective exchange rate has appreciated strongly, but the external position is broadly in line with fundamentals and desirable policies. Outlook and risks. Provided that political calm prevails, public investment is ramped up, and constraints on private investment are eased, growth is projected to accelerate gradually to 7 percent over the medium term. Lingering political uncertainty, low fiscal revenues, and weaknesses in state banks’ balance sheets are the main challenges to the medium-term outlook.