Output fell in the first half of 2013 but growth is projected to pick up gradually, as wage growth and falling unemployment support private consumption. Headline inflation is expected to decline in 2014 as the impact of the liberalisation of subsidised electricity prices vanishes.
The fiscal position is sound, and the policy framework is to be further strengthened by the introduction of a multi-year spending ceiling and an independent fiscal council. Stronger active labour market policies and life-long learning policies, and a lower tax wedge for low-income earners, would make growth more socially inclusive.
Note: All data definitions based on internationally comparable standards and may differ in specific cases from common national definitions.