A macroeconomic forecast from the Finance Ministry reveals that if next year's state budget were balanced, it could lead to a nearly 6.5 percent decline in the economy, a 4 percent drop in salaries for individuals, and an increase of 130,000 people in unemployment. The forecast suggests that achieving a balanced budget would require reducing state spending by approximately 7 percent of GDP, adversely affecting living standards. Alternatively, the caretaker government's proposal of gradual consolidation could result in a 0.5 percent GDP increase in 2024 and steady economic growth of 1-2 percent in the following years, with different effects on public and private sector salaries and a slight uptick in unemployment.
Source: TASR
Siavash Motlagh, Photo: TASR
