According to OECD’s Economic Outlook nr 83 published in June 2008 the expansion continued in 2007. Growth is expected to slow somewhat in 2008 and 2009 owing to a weaker world economy and tighter credit market conditions. The budget deficit shrank further in 2007, falling below 3% of GDP. Additional fiscal consolidation and structural reforms are called for despite the weaker external environment. The lower fiscal deficit, greater public sector efficiency and a more favourable business environment are important assets that will help sustain private sector confidence and economic growth.