|Economic growth is projected to benefit from accelerating exports, but also to become more broadbased as domestic demand picks up, in spite of on-going fiscal consolidation and a modest improvement in residential investment. Job creation is expected to slowly gather pace, leading to a slight fall in unemployment in 2015. Inflation will remain low, due to limited imported price pressures, still sizeable economic slack and recent wage restraint.
As set out in the Stability Programme 2014-2017, the authorities’ indicative aim is to turn the structural budget deficit, 1.9% of GDP in 2013, into a surplus of 0.7% of GDP by 2017. The process for allocating consolidation efforts across government levels has been revised, but would further benefit from a medium-term burden-sharing agreement. Reforming the wage formation process to better reflect domestic productivity developments would help to preserve external cost competitiveness.
Note: All data definitions based on internationally comparable standards and may differ in specific cases from common national definitions.