Piabove the forecasts, it seems that the primary budget surplus in Greece was formed in 2024, according to the final data of EL.STAT.
The primary surplus at the end of 2023 was significantly higher than the target, according to ELSTAT’s first estimate.
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According to the data, the primary surplus reached 4.01 billion euros or 1.9% of GDP, when last year it was zero.
GDP in 2023 increased to 220.3 billion euros compared to 206.6 billion euros in 2022 and 181.5 billion euros in 2021.
Based on ELSTAT data, the Greek debt decreased at the end of 2023 to 356.7 billion euros compared to 356.8 billion euros at the end of 2022. The reduction in absolute numbers is marginal, but as a percentage of GDP significant. Specifically, from 172.7% of GDP in 2022, it was limited to 161.9% of GDP at the end of 2023.
The Ministry of Finance reports that the resilience of the Greek economy and the stable fiscal policy led to the achievement of fiscal targets for the year 2023.
As announced by the Hellenic Statistical Authority, the primary general government result for 2023 amounted to 1.86% of GDP, against a target of 1.15% of GDP included in the Budget Advisory Report. In relation to the objectives of the 2024 Budget, an excess of net tax revenues of 292 million euros was observed in the last quarter of 2023 and of 647 million euros in the period January-February 2024, recorded fiscally in the year 2023, while a restraint was observed in the expenses of the entities general government amounting to 602 million euros.
It demonstrates the dynamics of the economy
This positive result proves the dynamics of the Greek economy, but also the gradual benefits from the reduction of tax evasion. It is indicative that in the months of January and February 2024, 397 million euros out of the 647 million euros that exceeded the targets, came from the payment of corporate income tax.
Exceeding the primary surplus target is reflected in 4 areas:
First, in the faster reduction of the public debt. Based on the above result, the Debt to GDP ratio decreased from 172.7% in 2022 to 161.9% in 2023.
Secondly, in creating a better starting point for achieving the 2024 fiscal targets, despite the international turmoil and the slowdown in international and European growth rates,
Thirdly, in the creation of more flexibility margins regarding the country’s 4-year fiscal planning due to debt containment.
Fourth, this result sends a strong signal to the international markets that the Greek economy is strengthening and growing beyond the targets, despite the difficulties and extraordinary events that the country has faced (natural disasters, international crises, dual national elections, etc.) the last year.
