Economic Outlook for 2007 and 2008: Cyclical Boom to Continue – Substantial Improvement on the Labour Market

The strong cyclical activity of last year is extending into 2007. After an increase of 3.2 percent in 2006, real GDP is expected to grow by 3.0 percent this year. While exports are slightly losing momentum, investment is gaining strength. Private household consumption is also picking up, though trailing the overall rate of economic growth. The positive trend on the labour market continues, with a further considerable gain in the number of new jobs and a continued fall in unemployment. In 2008, economic growth is set to moderate to a rate of 2.4 percent.