Assessment and recommendations I. Recent developments and prospects -The expansion continues -Unemployment starts to fall -Inflation convergence achieved -The external sector -Short-term outlook II. Macroeconomic policy -Monetary and exchange rate policy -Fiscal policy III. The health care issue -Size and performance of the health system -The institutional setting -Sources of pressure on health spending -The process of reform -Assessment and recommendations IV. Implementing structural reform: a review of progress -Progress in structural reform -Assessment and recommendations Annex -Calendar of main economic events Statistical annex and structural indicators