|As global conditions improve and domestic demand recovers, economic growth is projected to resume gradually. In light of recent positive surprises on GDP, employment and exports, the recovery may materialise more rapidly than expected, although developments remain fragile. The unemployment rate is expected to continue to slowly decline throughout the forecasting horizon. As economic slack is and will remain sizeable, inflation is set to remain very low, with a risk of deflation, which would make debt reduction more difficult.
Progress in economic adjustment has been made on several fronts, including fiscal consolidation, external rebalancing, private sector balance-sheet adjustments and structural reforms. Maintaining the reform momentum holds the key to ensuring that the recovery will be sustainable.
Note: All data definitions based on internationally comparable standards and may differ in specific cases from common national definitions.