- 10 May 2004
The economy has finally emerged from recession and GDP growth began to pick up at the end of 2003. It should reach almost 1 per cent in 2004 and about 2 per cent in 2005, reflecting a revival in international trade and the end of a three-year fall in business investment. With much slack in the economy and an agreement to keep wage increases low, inflation should fall to less than 1 per cent in 2005. The government needs to strengthen work incentives by pushing ahead with planned social security reforms and should aim to raise productivity growth by strengthening entrepreneurship and competition, improving human capital and fostering innovation and research...