Global economy grew 3.2% in 2023, with 1.7% in developed and 4.2% in developing countries. Inflation decreased in both developed (4.6%) and developing (8.3%) economies. High debt-to-GDP ratio persisted in developing countries. Russia-Ukraine war and Middle East tensions continued to impact global trade
SGP was established in 1997 to maintain stability in the European Economic and Monetary Union. Requires government deficit to stay below 3% of GDP and debt to remain below 60%. All EU member states are automatically members of both EMU and SGP
Sixpack reformed Stability and Growth Pact after 2009 debt crisis. Member states must maintain 3% deficit and 60% debt limits. Annual compliance reports required for all EU states. Medium-Term Budgetary Objectives (MTOs) set for each member state
SGP is a binding EU agreement regulating economic policies and monetary union stability. Budget deficit cannot exceed 3% of GDP and national debt cannot exceed 60%. Non-compliance leads to maximum 0.5% GDP fine for three consecutive years
Austerity refers to government economic policies to control public sector debt. Implemented when government debt exceeds revenue, increasing default risk. Aims to improve government financial health and restore budget balance
Budgeting is a strategic planning process for future money spending. It outlines expected revenue, expenses, and cash flow for specific periods. Budgeting helps forecast financial risks and control resource management