Growth has been weak but is projected to gain some strength from the second half of 2013, supported by low interest rates. The labour market is likely to remain weak, but unemployment is projected to start to decline in 2013. Private consumption is being held back by uncertainty and deleveraging but is expected to gather strength as confidence improves.
Fiscal policy is expected to tighten somewhat from 2013, although the effects of the past measures will continue to support growth, which is appropriate. To limit risks arising from high household debt, financial supervision and prudential policies should be strengthened.