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Labor market recovery will help public budgets

Improving domestic demand in 2014 will support the economic growth and compensate for the weaker foreign demand caused by the uncertainty resulting from the current geopolitical conflict. This year’s development is marked by good news coming from the labor market confirming a robust growth of employment and wages. Thanks to this recovery, the economic growth by 2.4% is the most favorable for tax revenues in the whole post-crisis period. The rate of economic growth should slightly accelerate in the following year, although with a lower impact on the growth of tax bases.