Greek Economy: The Draft Budgetary Plan was submitted to the European Commission

Yesterday, Sunday, October 15, the Draft Budgetary Plan 2024 was submitted to the European Commission by the General Accounting Office of the State, which confirms the objectives of the draft budget submitted to the Parliament.

As stated in the relevant announcement, the DBP confirms the fiscal figures for the years 2023 and 2024, as reflected in the Draft Budget 2024 submitted on October 2, 2023 to the Standing Committee on Economic Affairs of the Parliament.

In this way, it is also confirmed to the international community that the goal of a primary surplus of 1.1% of GDP in 2023 and 2.1% of GDP in 2024 is achievable, while the debt of the General Government is expected to be de-escalated from 171, 4% of GDP in 2022 to 159.3% in 2023 and to 152.2% in 2024.

At the same time, the DBP includes all the fiscal measures as announced in the previous period and reflected in the Draft Budget 2024, while the implemented reforms that are consistent with the European priorities for development are listed in detail.

Estimates of the draft

According to the draft submitted to Parliament, the growth rate remains within the targets set in the April 2023 Stability Program and is expected to rise to 2.3% in 2023 and 3% in 2024.

Gross Domestic Product (GDP) in nominal terms is expected to increase from 208 billion euros in 2022 to 224 billion euros in 2023 and 235 billion euros in 2024. At the same time, the Harmonized Index of Consumer Prices is expected to fluctuate at slightly lower levels and to stand at 4% against the 4.5% foreseen in the Stability Program for 2023 and to further decelerate to 2.4% for 2024. Investment is expected to grow by 8.3% this year and even more in 12 .1% in 2024, while unemployment is expected to decrease from 11.2% in 2023 to 10.6% in 2024.

Primary surplus

Accordingly, the primary result for the year 2024 is projected to be 2.1% of GDP in accordance with the objectives of the Stability Program. The fact that the fiscal result of the years 2023 and 2024 remains within the estimates that were reflected in the Stability Program, strengthens the credibility of the country’s debt in view of the upcoming assessments.

General Government debt is expected to de-escalate impressively from 171.4% of GDP in 2022 to 159.3% in 2023 and to 152.2% in 2024.
The above proves that the country has entered a virtuous cycle of debt reduction and economic growth. Of course, economic activity depends on developments in the international environment and possible external crises. Economic stability and progress can only be ensured if the set fiscal goals are strictly adhered to, while channeling the limited fiscal resources in a targeted manner, with the maximum possible economic and social efficiency.