Investment to grow rapidly
Despite a slowdown in exports, economic growth remains robust at 3% to 3.5% in 2006-07 and is being increasingly driven by domestic demand.
The expansion should continue with household consumption projected to benefit from an improvement in employment. Investment, and in particular construction, should continue to grow rapidly in response to low interest rates.The government’s plan to improve the labour market situation includes increased public spending for 2006. The two-year employment package is designed to create up to 55,000 new jobs. Inflation remains well below target and the central bank has lowered short-term interest rates to historically low levels. Hence, both fiscal and monetary policies are currently expansionary and will have to become more restrictive over the projection period to avoid overheating.
Population (000s), 20048 994
Area (000 sq km)450
GDP (Billion USD), 2004346.4
Life expectancy at birth (Women, Men), 2003 82.4, 77.9
Total labour force (000s), 20044 512
Government typeConstitutional Monarchy
Indicators% change unless otherwise indicated
GDP growth2.43.53.0
Household savings ratio10.19.59.5
Consumer price index0.41.62.0
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: -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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