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| Content Provider | OECD iLibrary |
|---|---|
| Organization | OECD |
| Abstract | The economy lost steam in the second half of 2002 due to weak export performance and falling business investment. A recovery in exports should make for stronger growth over the course of 2003, and prospects look bright for next year as the international situation improves and investment picks up. Developments in the telecommunications sector remain a source of downside risk, whereas rising wage pressures may imply an upside risk to inflation. The fiscal position is still sound, with structural surpluses of around 1ΒΌ per cent of GDP. However, following the large tax cuts in 2002, further fiscal stimulus would not be helpful. The proposed measures to curb the number of sickness beneficiaries should be implemented without delay. Monetary policy should be tightened gradually from the second half of 2003 as activity quickens. |
| Page Count | 11 |
| Starting Page | 105 |
| Ending Page | 106 |
| Language | English |
| Publisher | OECD Publishing |
| Publisher Date | 2003-06-13 |
| Access Restriction | Open |
| Subject Keyword | Economics |
| Content Type | Text |
| Resource Type | Chapter |
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