The number of people living below the poverty line increased to 26.3% of the population
The recently published report stated that the ongoing tensions in the region have affected economic growth, public coffers, unemployment, and inflation rates.
"Short-term policy actions such as increasing public sector wages and subsidies, aimed at reducing social tensions, exacerbate the situation," the report's authors wrote.
Both stimulus packages aim to boost the economic growth rate to 3.5% by the end of the 2013/2014 fiscal year and reduce the budget deficit to 10% of GDP.
Despite these goals, the report said the real GDP growth rate is expected to remain weak in 2014 because of a low level of investment. Total investments dropped by 2%, reaching 14.2% of GDP in 2012/2013, which is a significant decline from 2010/2011 and 2011/2012 levels, when investments accounted for 16.4% and 17.1% of GDP.
Meanwhile, according to the report, foreign direct investment (FDI) has shown slight improvement. In the past three years,
Pre-revolution, FDI inflows to
With regard to unemployment rates, the
"These figures include only registered workers and didn't take into account the informal economy where unemployment is believed to be higher than the official rate," the report said.
The number of people living below the poverty line increased to 26.3% of the population in 2012/2013 compared to 25.2% in 2010/2011.
The government's expansionary fiscal policy and rising domestic debt over the last two years have left "little room" for private sector financing, according to the report. Food and fuel subsidies, occupying about 30% of government's expenditures, are keeping the budget deficit increasing.
According to official data from the
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