Friday, April 22, 2016

Surging Refugee Costs Hampering EU Economies

A recent poll in Germany indicates that a majority of people are living in fear due to the refugee crisis engulfing Europe. This supporters of open immigration policies vulnerable in the coming election. Also, surging refugee costs will become even more troublesome as the EU economy enter liquidation in 2017.

Headline: The Refugee Surge in Europe

The short-term fiscal costs of caring for the asylum seekers could be sizable in some countries.IMF staff estimate that, on a GDP-weighted basis, average budgetary expenses for asylum seekers in EU countries could increase by 0.05 and 0.1 percent of GDP in 2015 and 2016, respectively, compared to 2014(see table). These estimates are highly tentative, reflecting, in particular, uncertainty over the number of asylum seekers. Austria (at 0.08 and 0.23 percent of GDP), Finland (at 0.04 and 0.28 percent of GDP), Sweden (at 0.2 and 0.7 percent of GDP), and Germany (at 0.12 and 0.27 percent of GDP) are expected to shoulder the largest spending increases in 2015 and 2016, respectively, relative to 2014.



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