The economic crisis continued to dominate events in 1998. Thailand is expected to show negative GDP growth of 7% to 8%, production capacity is running under 50%, unemployment is on the rise, and the financial sector's no nperforming loans amount to 46% of all the debt. In the midst of crisis, however, the groundwork has been laid for extensive banking, legal, tax, and institutional reform. Focus has turned on efforts to streamline regula tions to create greater transparency and accountability in the system.