Excess liquidity remained high, although we believe it is not inflationary, particularly in view of the much lower credit growth and the supply-side nature of inflation in the country. With respect to government’s finances, 2018 was a positive year. The fiscal position returned to an estimated surplus of $ million after two successive years of deficits, reflecting considerable fiscal consolidation.
In contrast, the increase in employment since the end of 2009 has been due to a significant decline in layoffs but only a moderate improvement in hiring. To achieve a more rapid recovery in the job market, hiring rates will need to return to more normal levels. The change in unemployment and economic growth: a puzzle?