While marked progress has been made in resolving the financial and banking crises, economic growth is projected to remain low, but positive, during the next two years. The weak European economy, accounting for a majority of Irish exports by destination, will make it difficult to offset the drag from ongoing fiscal consolidation, household deleveraging, low credit availability and subdued sentiment. Weak growth makes it unlikely that unemployment will decline substantially from the current high levels. Ample spare capacity will keep inflation low.