Key macroeconomic developments
The housing market weighs on the economy
Potential growth has decelerated
Social indicators are solid
Exposure of major coastal cities to flood risks
Fiscal consolidation has been sizeable
Corporate income tax rate, foreign direct investment and special financial institutions (SFIs)
Assets of financial corporations
Capital ratios in the banking sector are comparatively low
Financial buffers to absorb losses from non-performing loans are relatively weak
Risk premiums on market funding have become more costly and volatile
Dependence on market funding remains high
Debt of households and non-financial corporations
Household balance sheets have become more stretched
Risks are concentrated among young and prime-age households
Small and medium-sized enterprise (SME) sector indicators
Bank lending constraints for SMEs are high
Sources of external financing of SMEs
SMEs collaborating on innovation
The most problematic factors for doing business
The strictness of employment protection legislation for permanent contracts is high
Product market regulation (PMR): Barriers to entrepreneurship