Use anyone fiscal space arises from unforeseen income or shortfalls in expenses to reduce state debt and not for the benefits indicated yesterday OECD V Hellassending a clear signal to the next government that the key surplus target is expected to be exceeded this year.

Apparently taking into account the tactics used in the previous period to divide “fiscal space” into incentives, the organization indicates that using it to reduce debt will help contain inflationary pressures and reach investment grade. This, in turn, offsets the rising cost of borrowing for the country and supports the goal of increased investment in the long term.

In yesterday’s Economic Outlook report, the OECD also notes that investment will remain strong despite rising borrowing costs, thanks to the Recovery Fund, which forecasts an increase of 8.9% in 2023. The public investment of the Recovery Fund will be 1% of GDP in 2023 and 1.7% in 2024.

However, this is a wake up call for inflation because, despite its decline since September 2022, it has become widespread, fueled by ongoing labor shortages. However, she forecasts inflation at 3.9% this year and falling to 3.2% in 2024. The slowdown in employment and the erosion of real wages will limit consumption, while in the same direction curbing demand, fiscal tightening, the organization notes. . Further increasing the participation of women and youth in the labor force will also contribute to addressing the shortage of labor in the market.