NBU improved the budget deficit forecast in 2016.
The National Bank has improved the state budget deficit forecast for 2016 from 3.4% of GDP to 2.9% of GDP.
This is stated in the quarterly report, the inflation control.
According to the NBU believe that fiscal policy will remain restrained in 2016 (the structural balance of the consolidated budget will be close to zero), followed by a gradual easing in the forecast horizon.
“Still high volumes of debt service costs (4.5% of GDP) will determine the need for the implementation of the consolidated budget with a positive primary surplus of 1.5% of GDP (the current estimate – 1.9% of GDP) ratio of the consolidated budget revenues to. GDP in 2016 will decrease by 1.4 p.p. in comparison with the previous year, largely due to lower transfers National Bank profits (1.7% of GDP compared to 3.1% of GDP last year) and the double-declining tax revenues international trade (due to the cancellation of additional import duties) “- National Bank said.
The National Bank estimates the growth of the gross domestic product in the 1st quarter to 0.8%, and forecasts growth of 1.1% in 2016.
