The first half of the year brought confirmation of the signs of recovery that had emerged towards the end of 2005.
Industrial firms’ orders and sales increased, and production expanded after five successive years of contraction, but the current phase is still marked by the weakness of industrial investment. Conditions in the construction and service sectors remained moderately positive. Total employment continued to grow and the unemployment rate fell further.
Bank lending rose rapidly, at a higher rate than in 2005. The increase was particularly large for loans to financial and insurance companies. Lending to the productive sector accelerated, although its rate of growth did not match that of lending to consumer households. Loan quality did not change significantly. Fund-raising recorded a further increase in current accounts and renewed, sizable growth in repos.
