The economic expansion was derailed in 2015 by a sharp slowdown in demand from China and other Asian countries and sluggish private consumption. Output growth is projected to pick up from around ½ per cent in 2015 to 1% in 2016, as rising real wages support consumer spending. However, with the consumption tax hike in 2017, growth is likely to slow to ½ per cent. Headline consumer price inflation, which has fallen close to zero with the decline in oil prices, is projected to reach 1½ per cent by end-2017.