Downswing Flattening Out

Latest data confirm that the economy while not yet turning around toward an upswing remains rather well protected against risks of recession. Sluggishness on major foreign markets in the West is partly offset by lively demand from neighbouring Eastern countries; also, exports to Germany are still on the rise. Domestic demand remains firm with construction and tourism being the most buoyant sectors. The rise in unemployment has come to a halt as immigration is approaching the statutory ceiling. Inflation, while slowing, is still running at an annual rate of just above 4 percent.