Economic growth remains subdued, but is expected to gradually pick up as export demand rises, monetary and fiscal policies remain supportive, and confidence returns.
Fiscal policy is expected to be accommodative in 2014, which is appropriate given the fragile nature of the recovery. Reviving productivity growth should remain a focus of the government and motivate further competition-enhancing reforms, especially in service sectors. High gross household debt, combined with record-low interest rates, warrant further measures to enhance financial sector stability.
Note: All data definitions based on internationally comparable standards and may differ in specific cases from common national definitions.