This is another IMF nail (the IMF after all!) into the coffin for the nonsensical austerity policies and the “it’s all about competitiveness” mantra coming from the Troika and German politicians and economists. It’s the aggregate demand, stupid. End of story.GIGO
Happy Birthday Okun's Law!
For in depth analysis, see Bill Mitchell, Okun’s Law survives 50 years – trouble for the neo-liberals