The economic outlook started to improve in the second half of 2003, and growth should reach 3½ per cent by 2005 as world trade expands and financial markets gradually recover. Private consumption, business confidence and investment are also projected to pick up. However, the economic recovery will not be strong enough to stabilise the unemployment rate. The government should review its spending programmes in line with more moderate medium term growth prospects and use this opportunity to introduce measures to tackle structural unemployment...