The economy is projected to grow by 3¼ per cent in 2021 and to accelerate in 2022-23 with GDP growth ranging between 4¼ and 4½ per cent. The renewed dynamism of exports, the strength of investments supported by significant EU funds and the robust momentum of private consumption should stimulate activity. Inflation is rising sharply due to the surge in energy prices and the tightening of the labour market, and is expected to see its underlying level reach 2¼ per cent in 2023, the highest rate since 2010.
The pandemic risks interrupting impressive income convergence and raises the urgency of making growth more inclusive. Addressing long-standing patchy coverage of social benefits and improving provision and efficiency of education and training should become top policy priorities in the recovery.
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2021 Structural Reform Priorities