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The potential growth rate of the economy has been low for a long time and the crisis has had a further adverse impact. The meager growth performance mainly reflects low growth in a number of services sectors; most manufacturing sectors, by contrast, expanded at a rapid pace in the years preceding the recent crisis, on the back of robust foreign demand. The challenge is to consolidate the past success of the export sector and to broaden it to the whole economy by making the policy framework more conducive to innovation and structural change.
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