Analysts at the Savings Bank raised their GDP forecast for this year

Due to easing external risks and strong FDI inflows, Savings Bank analysts have raised their GDP growth forecast from 3.7 percent to 4 percent this year, and expect 3.5 percent for next year. According to their forecasts, inflation is expected to average 3.6 percent in 2020, real wages may rise by 5.3 percent on average, and the base rate will not be raised before the fourth quarter of 2021 – the bank told MTI.

According to Savings Bank analysts, growth rates may remain strong. GDP growth was 5.1 percent in 2018 and 4.9 percent last year, slowing to 4 percent this year. However, wage outflows remain strong, supported by labor shortages, a reduction in the social contribution, minimum wage increases and wage agreements in certain sectors of the public sector. Thus, consumption growth will remain a strong driver of growth, which may also be supported by the announced family benefits. (MTI)