Improve fiscal credibility

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Output growth of close to 4% is expected in 2004, easing to around 3.5% in 2005 and 2006, with some reduction in the exceptionally rapid pace of export growth and a further slowdown in consumption growth. Inflation is expected to come down rapidly in the near term, as the impact from one-off increases in indirect taxes fades; it is expected to continue to fall, though at a slower pace, in 2005 and 2006, despite higher oil prices.
Although a reduction in the government's budget deficit is expected this year, a large gap remains between ambitions and outcomes in fiscal policy, making co-ordination of macroeconomic policy more difficult and raising risk premiums. The new government should switch to a more credible fiscal strategy that sets more realistic targets and backs them up with a stronger commitment to sustainable spending cuts.
Population (000s), 200310 124
Area (000 sq km)93
GDP (Billion USD), 200382.8
Life expectancy at birth (Women, Men), 2002 76.7, 68.4
Total labour force (000s), 20034 166
Government typeParliamentary Democracy
Indicators% change unless otherwise indicated
GDP growth3.93.63.5
Consumer price index6.94.74.5
Short-term interest rate (%)11.510.08.7
Unemployment rate (%)
General government financial balance (% GDP)-5.4-4.9-4.5
Current account balance (% GDP)-9.1-8.5-8.2
Source: OECD© OECD Observer No 245, November 2004

Economic data

GDP growth: -1.8% Q1 2020/Q4 2019
Consumer price inflation: 0.9% Apr 2020 annual
Trade (G20): -4.3% exp, -3.9% imp, Q1 2020/Q4 2019
Unemployment: 8.4% Apr 2020
Last update: 9 July 2020

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