The country’s debt service indicators and gross financing needs have breached the sustainability thresholds. The non-resident holdings of the public debt, although declined, is still high at 59.9 percent of GDP, above the threshold of 45 percent for the MAC.
This is a difficult question, since assessing the effects of budget policy depends on the judgement made on a set of parameters, including the distinction between cyclical fluctuations, other temporary factors and structural trends; the size of the budget multipliers; the sustainability of the public debt path; and the credibility of budget policy from an intertemporal perspective.