The simulation results showed that by 2020 a comprehensive package of policy measures, encompassing both product market and labour market reforms, could lead to a 2.2% increase in GDP, compared to the base line scenario. Employment levels could rise by about 1.5% over the same horizon. Such an outcome would also greatly support the ongoing fiscal consolidation process.
Confidence also remains high that fiscal and monetary policy will be directed toward securing sustainable economic growth. Given this situation, the United States is not experiencing difficulty in financing its deficit. Having said this, we need to carefully monitor foreign exchange rates and their impact on the economy since speculation may cause short-term volatility in foreign exchange and other financial markets.