17
04
2024
ECONOMY

Reduction of Greek public debt to 158.8% of GDP in 2024

The International Monetary Fund (IMF) predicts that Greece will achieve a primary surplus of 2.1 percent of GDP this year, accompanied by a reduction in public debt by 10 percentage points to 158.8% of GDP, according to its Fiscal Monitor report on fiscal developments.
Reduction of Greek public debt to 158.8% of GDP in 2024
The International Monetary Fund (IMF) predicts that Greece will achieve a primary surplus of 2.1 percent of GDP this year, accompanied by a reduction in public debt by 10 percentage points to 158.8% of GDP, according to its Fiscal Monitor report on fiscal developments.

The primary surplus is anticipated to persist at 2.1 percent of GDP until 2029, which aligns with the Fund's forecast horizon. Factoring in interest rates on public debt, a government budget deficit of 0.9% of GDP is projected for this year, gradually increasing to 1.4% by 2029.

Across the eurozone as a whole, a primary deficit of 1.2 percent of GDP is forecasted for this year, gradually decreasing to 0.2 percent by 2029. Concurrently, the overall fiscal deficit is expected to decline from 3.5 percent to 2.3 percent, respectively.

These primary surpluses are expected to facilitate a consistent reduction in Greece's public debt over the forthcoming years, reaching 138.8% of GDP by 2029. In the same timeframe, the eurozone's public debt is projected to experience a slight decrease to 87.7% of GDP from 88.6% in 2023.

General government revenues are anticipated to decline gradually from 46.8% of GDP this year to 43.7% by 2029, while general government spending will decrease from 47.7% to 45.1%, respectively.

tags: Economy Greece