Conditions should continue to improve in 2016,
with growth reaching 1.7 percent, a bit slower
than expected in June, reflecting a weakening
external environment. Growth should average 1.6
percent in 2017-18, slightly above potential.
However, concerns persist about low potential
growth, high unemployment, and large public
debt. While population ageing limits growth
potential (Jimeno 2015), labor mobility and
migration can help alleviate some of these
constraints (World Bank 2015b) and help
adjustments to country-specific shocks in
monetary union (Beyer and Smets 2015).