In particular, setting appropriate incentives for economic agents and thus enhancing the overall growth performance of the economy require further progress in following 5 main policy areas: •  Policies enforcing competition in product markets and promoting further integration, which will reduce excessive price margins and set incentives for entrepreneurs to become more productive.
With regard to prices, wholesale prices are on a downtrend reflecting the expanding output gap, and consumer prices have fallen below the previous year’s level. With respect to the outlook, given the persistently strong negative interactions of production, income, and expenditure, the expansion in the output gap seems unlikely to cease despite the expected effects of the comprehensive economic stimulus package.