/ world today news/ Inflation in 2014 will be the highest for the next seven years – 2.7 percent. This is recorded in the cabinet-approved changes to the National Reform Program, which the Ministry of Finance sent to the EC. Inflation is expected to be around 2.4 percent this year, but in 2020 it is planned to drop to 2 percent.
The Ministry of Finance lowered its expectations for the growth of the economy, and instead of the budgeted 1.9%, one percent growth is expected by the end of the year. People will consume less, writes the National Reform Program, because of unemployment and slightly increased wages. Investments that are now being postponed, however, will take place until 2020, the analysis reassures. By then, economic growth should reach 2.2%, the calculations show. An aging population and fewer people of working age will be a problem.
According to the Ministry of Finance, unemployment this year will be slightly higher than last year and will reach 13 percent. From next year, however, according to the program, the indicator will begin to decrease to 9.4% before 2020.
High unemployment is also the reason why wages will not rise significantly, but by between 4 and 6 percent for the next seven years, the analysis explains.
It is written in the National Reform Program that by the end of the year, about BGN 280 million will be used to repair and equip state and municipal hospitals, and this will benefit more than four million people.
BGN 16 million from the budget and BGN 36 million from European funds are earmarked for training and employment of unemployed youth. This could help over 8,000 people. According to data from the Ministry of Finance, about 75,000 young people under the age of 29 registered at the labor offices last year.
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