Active labour market policies can mitigate the hysteresis effect and should be given priority, along with measures to strengthen the social safety net. Downside risks to the outlook exist. •  The main risk is due to political uncertainty, related to the election of a new President in early 2015.
4  BIS central bankers’ speeches  •  A second downside risk relates to a slowdown in the global economy and an increase in risk premia in international asset markets. Lower growth elsewhere would hurt exports and higher risk premia would worsen already tight financial conditions, with negative consequences for investment.