Growth is projected to continue to pick up as domestic demand, supported by low interest rates and improved confidence, gains momentum, and as exports accelerate on the back of strengthening external demand. Employment growth will gradually increase in 2014, contributing to a fall in the unemployment rate.
Fiscal policy is expected to be broadly neutral in 2014, although the effects of past measures will continue to support private demand. Given the large automatic stabilisers, further discretionary stimulus is not warranted. To limit the risks arising from high household debt, financial supervision and macro-prudential policies should continue to be strengthened.
Note: All data definitions based on internationally comparable standards and may differ in specific cases from common national definitions.