A minority right-of-centre government, consisting of the Conservatives and the Progress Party and supported by two small centrist parties, is expected to serve its full term.
The government will eventually lower corporate income tax and introduce other tax changes to benefit business, although this is unlikely to have a significant effect on the broader economy in the short term.
Faster euro area growth and a rebound in investment should encourage fester growth from 2016, and we forecast average annual growth of 2.6% in 2016-19.

Highlights 7

Political outlook 8

Economic policy outlook 9

Economic forecast 10

Annual data and forecast 14

Quarterly data 15

Monthly data 16

Annual trends charts 18

Monthly trends charts 19

Comparative economic indicators 20

Basic data 21

Political structure 22

Politics 23

Economy 26

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