GDP is projected to grow by 5.5% in 2022 and 3.8% in 2023, supported by fiscal and monetary policy. Domestic demand will be the main driver of growth as higher confidence, improving labour market conditions, favourable financing conditions and the Next Generation EU funds boost private consumption and investment. Headline inflation in 2022 will remain high, due to the carryover effect from 2021, while core inflation will remain at moderate levels.
A strong, resilient and inclusive recovery from the COVID-19 crisis requires improving productivity growth, by boosting digitalisation, innovation, and investment in intangible capital. It also requires addressing long-standing structural problems in the labour markets, reinforced by the pandemic: high unemployment, insufficient skills, large regional variation and a large share of workers on non-regular contracts.
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2021 Structural Reform Priorities