Part 6/11:
Economic experts warn that prioritizing deficit reduction without fostering growth could become a self-defeating endeavor. Austerity measures have haunted economic recovery for over a decade, contributing to historically low long-term growth rates — a condition further exacerbated by rising bond yields and consequent increases in debt interest.
Positive Developments Amidst the Unrest
Despite significant challenges, there are some glimmers of hope. The reduction in oil and gas prices by about 15% hints at a potential decrease in inflation, easing pressure for households and the government alike. Lower inflation predictions have led the market to anticipate several interest rate cuts, which could provide much-needed relief for struggling households burdened by debt.