The COVID-19 pandemic had severe health and economic impacts
Income convergence has gathered pace
Violence against women has increased during the pandemic
The healthcare situation worsened in the second and third waves of the pandemic
High bed capacity was not matched by similar intensive care capacities
Capacity reallocation may increase mortality from other causes in the future
Economy activity contracted sharply in 2020
Better-targeted measures in the second wave moderated the economic decline, with tourism as a notable exception
Government support averted bankruptcies
Production and confidence continue to recover
Employment growth was driven by the expansion of large firms
The labour market weakened temporarily as the pandemic spread
The short-time work scheme provided a relatively low replacement rate
Unemployment of young and low-skilled workers increased before coming down again
Wage growth outpaces productivity improvements
The labour tax wedge remains high despite lower social security contributions
Wage and inflation pressures remain high
Supply chain disruptions are slowing down the recovery of the automotive sector
Automotive products dominate exports
Monetary policy remains accommodative despite inflationary pressures
Bank lending is strong and the share of non-performing loans has fallen
Banks’ low profitability and high operating costs remain a concern
EU funds support many activities
Spending pressures related to population ageing need to be addressed
Green growth indicators have mostly improved
Carbon pricing score
An aging car fleet is increasingly based on diesel
Landfill taxes are low
Tariffs for water and wastewater services are low
Strong investment drove productivity growth before the crisis
Business dynamics are low
The insolvency regime is stringent
Occupational entry barriers remain high
Corruption is perceived as high compared with other OECD countries
Anti-money laundering measures should be enhanced
Regional differences in employment and unemployment are large
The minimum wage is relatively high
Housing supply adjusts relatively slowly
Nursery enrolment remains low
The gender pay gap is high for women in their 30s and 40s
Women’s work-life balance hampers their career prospects