Economic growth, which should reach about 3% in 2006, is likely to slow in 2007 and 2008 in a context of tighter monetary policy and a slightly less buoyant international environment. GDP will continue to rise more rapidly than potential output however, which should entail a further reduction in unemployment. Inflationary pressures seem likely to remain low, however.

With the economy still growing strongly, the gradual tightening of monetary policy towards more neutral conditions should continue. Steps will also have to be taken to keep social spending under control and maintain healthy public finances. Recent economic results, though encouraging, must not lead to complacency: potential growth needs to be strengthened, which requires the pursuit of reforms to stimulate competition and boost productivity.

Population (000s), 20057 438
Area (000 sq km)41
GDP (Billion USD), 2005271.3
Life expectancy at birth (Women, Men), 2004 83.7, 78.6
Total labour force (000s), 20054 371
Government typeFederal Republic

Indicators% change unless otherwise indicated
GDP growth3.02.22.0
Consumer price index
Unemployment rate (%)
General government financial balance
(% GDP)
Current account balance (% GDP)15.316.617.9

Source: OECD

©OECD Observer No. 258/259, December 2006

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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