This supplement provides information that has become available since the issuance of the staff report The information does not alter the thrust of the staff appraisal.
The following updates reflect the release of 2018 data and the authorities’ recent update of the Draft Budget Plan (DBP) for 2019.
The authorities’ updated DBP for 2019 shows a smaller fiscal expansion than earlier planned (0.5 percent compared with 0.7 percent) with no major structural fiscal reforms.
Reflecting the updated plans as well as the preliminary 2018 fiscal outturn data, staff projects that the 2019 budget will result in a deterioration of the structural fiscal balance of about 0.6 percent of GDP, compared to 0.7 percent in the staff report. The basis for staff appraisal remains unchanged.