|Economic growth is projected to pick up in 2014 and 2015 as export markets strengthen and the pace of fiscal consolidation slows down. Private consumption will contribute positively to GDP growth for the first time in five years with the recovery of the labour market and stronger real wages. Investment will progressively pick up thanks to a more favourable environment in the euro area, and will further expand the export-oriented manufacturing base. The completion of the highway network will further broaden the regional base for export-oriented activities.
To ensure that fiscal consolidation is sustainable, the authorities need to reduce the role of one-off budgetary measures. The ongoing reform of the public sector and the absorption of European Union funds should be strengthened. More effective active labour market policies and reforms in education would reduce long-term unemployment. Reforms to increase productivity in services will help to improve the resilience of the economy.
Note: All data definitions based on internationally comparable standards and may differ in specific cases from common national definitions.