With consumer sentiment looking more positive, lower interest rates and an improvement in the international environment, GDP is expected to grow by 0.7 % and 1.3 % in 2025 and 2026, respectively. CPI inflation is expected to amount to 2.6 % and 2.1 %, respectively, in the next two years, down from 2.9 % in the current year. The unemployment rate is expected to rise from 7.0 % in 2024 to 7.4 % in 2025 and, thereafter, fall to 7.1 % in 2026. These forecasts are subject to severe economic policy uncertainties, and the forecast risks are clearly on the downside. Moreover, the necessary budget consolidation is likely to dampen growth.