“Growth is forecast to ease toward its potential growth rate of 5-5.5 per cent in 2022 and 2023 amid tighter fiscal policy and stabilizing domestic demand. The forecast is predicated on limited pandemic-related disruptions supported by progress with vaccinations, and improving consumer and business confidence,” the report reads.

It further said that risks to the baseline forecast remain tilted to the downside with key risks including (i) inflationary pressures triggering further tightening in financing conditions and (ii) intensive spread of COVID-19, particularly in the context of new variants and low vaccination rates.