Part 5/9:
For the country to address its budget deficit, the focus lies on stimulating economic growth, which could be accelerated through incentive-driven innovation. The prospect of reducing the deficit relative to GDP is a key ambition, with targets set to achieve a more robust economic growth trajectory.
Monetary Policy Insights
Turning to monetary policy, current indicators reflect an uptrend in money supply growth. The M2 money supply growth rate stands at around 3.9%, potentially signaling a decline in inflation as the economy stabilizes. Nonetheless, the Federal Reserve maintains a cautious stance, aiming for a 2% inflation target.