Overall, activity in the region is set to contract by 0.6 % in 2015, but to expand by 1.3 % in 2016. •  Compared to the 2015 Spring REI, the policy challenges have not changed much and still include supporting domestic demand and rebuilding buffers against external shocks.
This stronger growth is expected to come from private domestic demand, reflecting the current monetary stimulus in the economy and high levels of business and consumer confidence. Such growth would return the economy to close to its production potential by the third quarter of 2005.