Fiscal sustainability a priority
Output growth of close to 4.25% is expected in 2005, rising to 4.5% in 2006 before edging down a little in 2007. While some reduction in the contribution from the external sector is likely, domestic demand is expected to pick up. Inflation is set to fall sharply in the near term, reflecting reductions in indirect taxes, but will rise again in 2007, though it will remain on track to meet medium-term targets.
Ensuring fiscal sustainability must be a priority. For 2006 the government aims for a substantial cut in the headline budget deficit but one-off factors, notably plans to take expenditure on motorway construction off budget, suggest that the underlying deficit will increase by about 1 percentage point of GDP. A fiscal strategy that backs realistic targets with stronger spending discipline is needed to recover credibility and avoid an increase in the risk premium.
Population (000s), 200410 107
Area (000 sq km)93
GDP (Billion USD), 2004100.3
Life expectancy at birth (Women, Men), 2003 76.5, 68.3
Total labour force (000s), 20044 153
Government typeParliamentary Democracy
Indicators% change unless otherwise indicated
GDP growth4.24.54.3
Consumer price index3.72.02.7
Short-term interest rate (%)
Unemployment rate (%)
General government financial balance (% GDP)-6.1-5.9-5.9
Current account balance (% GDP)-8.4-8.7-8.5
Source: OECD© OECD Observer, No. 252, November 2005

Economic data

GDP growth: -9.8% Q2/Q1 2020 2020
Consumer price inflation: 1.3% Sep 2020 annual
Trade (G20): -17.7% exp, -16.7% imp, Q2/Q1 2020
Unemployment: 7.3% Sep 2020
Last update: 10 Nov 2020

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