This sharp decrease in projected GDP growth is highly concerning, as it has major implications for the economy and the public. A sustained decrease in GDP growth can dramatically reduce the country’s economic output and have a major impact on the availability of jobs and government services. What’s more, slower economic activity can lead to a decrease in consumer and business confidence, reducing overall spending and investment.
In order to counteract this downward trend, the government will likely need to take decisive action in the form of increased spending, tax incentives, and regulatory relief measures. Additionally, measures to promote foreign investment, such as loosening visa rules and expanding free trade agreements, could help stimulate growth in the short-term. In the medium and long-term, pursuing aggressive policies to bolster the manufacturing sector, and especially the tech industry, could be a better way to assure lasting economic growth.