Fortunately, the two goals – achieving fiscal sustainability, which is the result of responsible policies set in place for the longer term, and avoiding creation of fiscal headwinds for the recovery – are not incompatible.
According to the Bank’s projections released at the end of last month, the real GDP growth rate will remain relatively low in fiscal 2011, at 0.3 percent, but will continue to register positive growth in fiscal 2012 and fiscal 2013 – of 2.2 percent and 1.5 percent, respectively.