Ukraine's Fiscal Consolidation Measures Could Have Modest Impact on Growth
The article examines how fiscal policies impact economic growth in Ukraine. By analyzing revenue and spending multipliers, it finds that short-term consolidation measures have limited effects on growth. However, in the medium-term, increasing capital spending can offset the negative impact of current spending cuts, leading to stronger growth. This suggests that policymakers should consider a mix of revenue and spending measures to support economic recovery while ensuring public debt sustainability and investor confidence.