SOFIA, Bulgaria -- The new cabinet met for the first time on Wednesday (July 29th), with Finance Minister Simeon Dyankov serving up some sobering news: he predicts the economy will shrink by 6.3% this year. He quoted the latest forecast from the Agency for Economic Analyses, as well as forecasts by his ministry. Experts say it will likely be the working forecast that the ministry will use from now on, in contrast to the 2.5% contraction expected by his predecessor, Plamen Oresharski. Dyankov added that his ministry would have to raise an additional 1.3 billion euros this year, half through spending cuts, half from tax collection.
Uncle's Comment: 6.3% is a VERY severe downturn, it's worse than the UK figures which are considered bad.Raising taxes and cutting public expenditure are not the solutions to this.I am a firm believer in spending your way out of a recession.The UK government has been virtually printing money !.