Consumer spending picking up
Private consumption is now recovering from the protracted adjustment following the collapse of the household credit bubble in 2002 and exports have begun to pick up. These factors are projected to boost economic growth from 4% in 2005 to around 5% in 2006- 07. Underlying inflation is expected to increase to the mid point of the central bank’s 2.5% to 3.5% per cent target zone in the context of stronger growth and higher energy prices.
Monetary policy should focus on the medium-term inflation target, accompanied by a flexible exchange rate policy. Concerns about rising housing prices in some parts of the country should be addressed through tax measures and policies to increase supply. Further reforms are needed to address the structural causes of weak domestic demand, notably household debt delinquency.
Population (000s), 200448 082
Area (000 sq km)100
GDP (Billion USD), 2004679.7
Life expectancy at birth (Women, Men), 2002 80.4, 73.4
Total labour force (000s), 200423 370
Government typeRepublic
Indicators% change unless otherwise indicated
GDP growth3.95.15.2
Household savings ratio5.35.35.4
Consumer price index2.83.33.4
Short-term interest rate (%)
Unemployment rate (%)
General government financial balance
(% GDP)
Current account balance (% GDP)
Source: OECD© OECD Observer, No. 252/253, 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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