OECD - Economic outlook
Considerable progress has been made during the recession in reducing economic imbalances. This provides a strong foundation for the economic recovery, which is projected to get underway in the second half of 2010 despite major fiscal consolidation. The recovery is projected to be led by domestic demand, which should be boosted in 2011 by planned investment in large energy-related projects.
The government needs to remain on track for realising its fiscal consolidation goals, as it has to date. It should also strengthen the local-government fiscal framework this year, as planned. Monetary policy should continue to target currency stability. Capital controls should be liberalised once the medium-term fiscal consolidation plan is well underway, the banking sector has been put back on its feet, and there are adequate international reserves.
OECD Economic outlook
