Economic growth slowed to around 1.5 percent in 2014 reflecting declining exports and weak domestic demand. Although labor market indicators improved over the last year, with the unemployment rate declining to 18 percent, high unemployment is still a limiting factor for poverty reduction to pre-crisis levels. External imbalances remained substantial with the current account deficit widening as exports declined, and external debt rising. While fiscal consolidation efforts led to a deficit reduction to 1.4 percent of GDP in 2014, highway construction costs (about 23 percent of GDP) will burden public finances in 2015-18, worsen debt sustainability and increase financing risks. For 2015, real GDP growth is projected to reach 3.4 percent underpinned by public investments in the highway; this should also lead to a further unemployment decline.