The fiscal drag
does look to be a temporary issue, meaning that volatility could present buying opportunities for investors with longer-term time horizons.
Yet, as the IFS points out, while fiscal drag
may be the easy way for a Chancellor to lift more money off us, with the least political risk, it is not necessarily the best.
The Washington-based Institute of International Finance (IIF) expects the UAE's non-oil activity to pick up modestly in 2017 as fiscal drag
eases and consumption spending rises in the second half of 2017, ahead of the introduction of value-added tax in 2018.
There's anecdotal evidence that many appointments to senior positions in several departments and government agencies have not yet been signed by the President (Rodrigo Duterte) as of September, which reinforces this fiscal drag
,' Trinidad said.
Continued progress in reforms, lower fiscal drag
, and stronger external demand, especially from the Euro area, are expected to support the recovery.
Chang said the government was highly likely to face fiscal drag
in the fourth quarter due to shortfalls in tax revenue and the front loading of the budget in the first half of this year by 58.
In the United States, Fischer attributes the weakness of demand to housing, Europe and fiscal drag
, and suggests that all these "headwinds" could be counteracted with better policies.
Together with a decline in fiscal drag
for next year, this leads us to revise up Spain's growth outlook from +0.
Financial dictionary: Fiscal drag
THIS can describe the way the amount of tax paid can increase when earnings rise during economic growth.
There are two major risks to the Japanese economic scenario: Will the LDP government be able to enact structural reforms to offset the fiscal drag
of the consumption tax?
In an interview on CNBC on January 2, Dr Doom was more optimistic: "The advanced economies, benefiting from a half-decade of painful private-sector de-leveraging, a smaller fiscal drag
, and maintenance of accommodative monetary policies, will grow.
Momentum in the US equity market can continue if companies see improved top-line growth as a result of pent-up demand, realization that interest rates will eventually rise, diminished fiscal drag
and more balanced global growth.