|The economy has continued to shrink, as declining employment, modest wage increases, tax hikes and subdued confidence have pulled down consumption and investment. Economic growth will resume as the international environment improves, boosting exports, improving confidence and reviving investment.
The government decided to speed up fiscal consolidation in 2015, which is likely to slow the recovery. Over the longer term, ensuring fiscal sustainability will require increasing labour force participation and public sector efficiency, as ageing pushes up government spending.
Note: All data definitions based on internationally comparable standards and may differ in specific cases from common national definitions.