Which of the following, if true, will indicate that the country may not be able to maintain this average growth over the next few years?
A.
The government reduced FDI restrictions in many domestic industries.
B.
Imports account for 12 percent of the country's GDP.
C.
The investment in public infrastructure has steadily increased over the last four years.
D.
The domestic currency is expected to remain stable in the near future.
E.
The central bank announced its intention to take appropriate measures to ensure that inflation stays within control.
E. The central bank announced its intention to take appropriate measures to ensure that inflation stays within control.
To determine which of the given options may indicate that the country may not be able to maintain its average growth over the next few years, we need to evaluate each option and consider its potential impact on the country's growth prospects.
A. The government reducing FDI restrictions in many domestic industries may actually be seen as a positive development for economic growth. It can attract foreign investment, stimulate competition, and help promote technological advancements. So, this option does not indicate that the country may not be able to maintain its average growth.
B. Imports accounting for 12 percent of the country's GDP does not directly indicate the country's ability to maintain its average growth. This information alone does not provide any insight into the country's domestic production, exports, or overall economic performance.
C. The steady increase in investment in public infrastructure over the last four years can be seen as a positive sign for sustainable growth. Improved infrastructure can enhance productivity, attract private investment, and support economic development. Thus, this option does not indicate that the country may not be able to maintain its average growth.
D. If the domestic currency is expected to remain stable in the near future, it can be considered beneficial for economic growth. A stable currency promotes investor confidence, facilitates trade, and helps in maintaining low inflation. Therefore, this option does not indicate that the country may not be able to maintain its average growth.
E. The central bank's intention to take appropriate measures to control inflation is a positive step to ensure stability in the economy. Controlling inflation helps in maintaining a conducive business environment and encourages investment. Thus, this option does not indicate that the country may not be able to maintain its average growth.
Based on the evaluation of the options provided, none of them indicate that the country may not be able to maintain its average growth over the next few years. In fact, options A, C, D, and E suggest conditions that are generally favorable for sustained growth. The given information does not indicate any negative factors that could potentially impede the country's growth prospects.