Recent Economic Developments, 119

18/11/2007
All Press Releases In Subject:
The Economy and Economic Activity

Recent Economic Developments, 119

Overview:

In the period reviewed––the second and third quarters of 2007––economic activity continued expanding. Developments in that period indicate that the economy was at an advanced stage of the growth cycle. This conclusion is supported by the contraction of the output gap, with a slowing of the rise in productivity and an increase in wages– –and hence a rise in unit labor costs––and the creation of upward pressure on prices, mainly domestic prices. The economy has already shown a growth trend in the three years 2004–06, and according to initial National Accounts estimates, GDP is expected to rise again at a similar rate, 5.4 percent, in 2007.

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