Greece Sees Rising Investments Helping Cut Deficit and Debt
The Greek government is forecasting that rising investments next year will help the economy grow by 4.5%, leading to reduced debt and deficit ratios.
The country’s stronger-than-forecast increase in output this year has come along with what’s expected to be 11.1% growth in investment. For 2022 investment is seen increasing by 23.4%, according to Greece’s draft budget for next year, which was presented Monday.
“Real GDP is expected to increase by 4.5% in 2022 compared to 2021, driven by the steady growth rate of private consumption, the significant boost of investment by 23.4% and the further recovery of exports of services by 21%, amid rising foreign tourism,” the draft says.
The administration led by Kyriakos Mitsotakis sees Greece’s primary surplus at 0.9% of gross domestic product in 2022, falling from 7.7% this year, as the pandemic effect eases. Athens also says it’s aiming to have a primary surplus in 2023.
Public debt is expected fall to 190.4% of gross domestic product next year after peaking at 205.6% in 2020.
As global prices soar, Greece expects its harmonized inflation rate to rise to 0.8% in 2022 from 0% this year.
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