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In 2018, economic growth is expected to remain above 2%, sustained by domestic and international demand. The momentum is forecast to slow down in 2019.
Economic expansion remains broad-based, driven by private consumption and business investments, while export growth is sustained by the eurozone demand.
A potential downside risk would be another deterioration in house prices, given high levels of mortgage debt and banks’ exposure to the housing market.
In 2018 and 2019 economic growth is expected to moderate somewhat but to remain robust, with private consumption and investment remaining the key drivers.
A potential downside risk to the economic performance could be the high household debt in case of sharp house price decreases and interest rate increases.