IBERSOL Annual Report 2018

The Year of 2018 The unemployment rate is expected to continue to decrease (from 15.3% in 2018 to 12.5% in 2020), but remains quite high, especially amongst the young and the long-term unemployed, and is a sign that there are some effects of the crisis which remain with us. The public finances deficit is expected to be around 2.7% of GDP, above initial forecasts, and the inflation rate should be 1.9%. After reaching a maximum of 100.4% of GDP in 2014, the public debt ra- tio has slowly been decreasing (98% in 2018), and is expected to drop to 96% in 2020. A more long-term reduction of public debt would require additional budget consolidation measures and continued high levels of economic growth. A high rise in minimum wage – around 20% - could bring about some significant changes, both in terms of business competitiveness and in- creased expenditure. 28