After a strong rebound during the first half of the year, GDP has surpassed its pre-pandemic level and is expected to grow by 5.3% in 2021. This momentum should continue with GDP growth projected to reach 5.2% in 2022, before easing to 3.3% in 2023. Consumption and investment will drive the recovery, with a sustained withdrawal of savings and the disbursement of EU funds significantly contributing to growth. However, an expanding economy and a tighter labour market will result in diminishing spare capacity, leading existing inflationary pressure to increase further.
The COVID-19 crisis has exposed long-standing issues in the health care sector, including the vulnerability of the population to respiratory illnesses linked to high air pollution. The main medium-term challenges are linked to the shortages of skilled workers and prevalence of micro and smaller firms with low productivity and weak connections to local, national and international markets. Addressing such challenges is key for digital and green transitions and ensuring their inclusiveness.
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2021 Structural Reform Priorities