Growth has proven resilient despite the continued fallout from the war in Ukraine and is set to strengthen starting this year albeit to subpar levels. Inflation continues to decline, but wage pressures linger. Risks remain elevated, including from an intensification of regional conflicts and an abrupt slowdown in Europe, and domestically, from rising political tensions and more expansionary macroeconomic policies. On the other hand, opening of European Union accession talks could sustain the reform momentum and boost confidence.