The Economic Outlook Report announced the following macroeconomic Indicators for a certain economy in 2020 in comparison to 2019:
Rate of growth of Real GDP - 4% ( negative 4%)
Rate of inflation ( GDP deflator) 7%
Rate of unemployment % of labor force 12%
The Report stated that the business confidence was negatively affected in 202 due to uncertainty & instability as a result of the Covid 19 Pandemic. The lockdown caused a great decrease in the exports of goods & services. Houser demand shrank as many citizens lost their wealth, in addition to the impact inflationary pressures.Economists advised the government to adopt policies to confront the unfav economic & social situation.They urged the Central Bank to decrease the interest rate. ' Moreover,, Do Business Indicators" have to improve, accordingly they suggested lowering business taxes in case of spending on new capital goods that produce pro which the country holds a competitive advantage. Getting rid of bureaucr paper work is a must to boost investment. They highlighted the importan government health care spending to save lives. Also governmental exper essential efficient infrastructure in the different districts is necessary. F to be provided to the IT ( Information & Technology ) sector as IT service inked to the activities of many sectors. Government should provide cas ransfers to people who were severely affected by the unsuitable econ atus. Moreover government should provide subsidies to sectors that oducts that are used as an input in many other industries. Tax post be provided to hotels & touristic sites as the previous long lockdon acted their revenues.
knowledging that their proposal would increase the government I le short run, they argued that their strategy focuses on ' sustain: lopment', 'net investment ', digitalization ' & ' green economy. in addition they aimed at increasing long run productivity through efficient training ,research & development (R & D) spending & good governance. They focused on the role of productive entrepreneurs in different sectors. Boosting aggregate supply is of vital importance. " Green economy"
However, since 2022 ,after the Russian Ukrainian war, priorities, policies & macroeconomic tools changed all over the world.
Real GDP growth rate recorded -4% ( negative 4%)" , state the main reasons, cite evidence from the case study in your analysis.