|Growth is gaining momentum, driven by a strong pick-up in private investment and consumption. Although unemployment will remain high throughout 2014, it is projected to fall markedly in 2015, which should help push up inflation from current low levels towards the 2% inflation target.
Monetary and fiscal policies need to remain supportive for some time. There is a case for cutting policy interest rates further in the near term. Remaining labour market rigidities and gaps in activation policies for disadvantaged population groups should be tackled to generate a stronger and more inclusive recovery. Household debt needs monitoring and housing market rigidities should be reduced to increase supply.
Note: All data definitions based on internationally comparable standards and may differ in specific cases from common national definitions.