2018 budget deficit expected at 1.4% – EC

Budget deficit is expected to amount to 1.4 percent of GDP in 2018 and in 2019, according to the latest forecast published by the European Commission. Earlier, the EC predicted the 2018 and 2019 deficit to come in at 1.7 percent. In 2017 deficit stood at 1.7 percent, while in 2016 it was at 2.3 percent of GDP. Very favorable job market situation and economic growth, as well as higher revenue from taxes due to tighter enforceability, were listed the main drivers of the improvement. Public debt should amount to 49 percent of GDP in 2018 and 2019, a drop from 51 percent in 2017 and 54 percent in 2016.