According to the European Commission’s Spring 2012 forecast, real GDP will contract by 1.8% in 2012 and 0.3% in 2013. The
government deficit was 8.5% of GDP in 2011 but is expected to fall to 6% in 2012. The reduction in the headline public deficit is due to the consolidation efforts undertaken by the authorities, including a partial reversal of the 2009 stimulus package.