|Economic growth is projected to accelerate and to become more broad-based as domestic demand picks up. Household consumption growth rose in 2014, and is projected to remain strong in 2015 and 2016 thanks to higher employment and real wages. Exports and investment will gain strength as the international environment improves.
Continuing fiscal consolidation, beyond the efforts that were required to exit the Excessive Deficit Procedure, is necessary to expand fiscal room and reduce public debt. Reforming the public sector, strengthening the fiscal framework and improving tax collection would all help in this regard. Better integrating lagging regions would raise potential growth, as would stepping up activation programmes and strengthening the education system.
Note: All data definitions based on internationally comparable standards and may differ in specific cases from common national definitions.