2023 state budget should take potentially low GDP growth into account

The budget draft currently being discussed by the government is based on GDP growth: 2.5% in 2022 and 2% in 2023. However, Statec’s latest forecast is much less optimistic. The agency believes that real growth could amount to 1-2%. The main threat is the recession risk in the Eurozone.

Yesterday Chambre de Commerce reported on the recalculation of budget indicators for 2021. It remained in deficit, but the loss was much less than predicted. The deficit amounted to only 803.62 million euros against the expected 2462.47 million.

Potential budget risks should be dealt with by tripartite measures. Some of them may even pay off. An example is part-time work, which can stabilize the labor market and the unemployment rate.