Due to a fertility rate of 1.4 children per woman, which is well below the reproduction rate, the population will decrease. Against the backdrop of an increase in life expectancy of almost 1.3 months per year this implies an increase in the old-age dependency ratio.
Fiscal policymakers have to play their part in reducing these risks by providing targeted and temporary support while, over the medium term, following a rules-based framework that underpins both debt sustainability and macroeconomic stabilisation. We are unwavering in our commitment to ensure that inflation returns to 2% over the medium term.