The new budget will mark the return of the economy to primary surpluses
In an exclusive statement to APE-MPE, Finance Minister Christos Staikouras characterizes the 2023 budget that will be tabled tomorrow at noon in the Parliament as “historic”, as he points out “it is the first in the last 12 years to be drawn up outside the framework of memorandum surveillance or enhanced supervision, sealing – in this way – the return of Greece to European normality”.
At the same time, the new budget will mark the return of the economy to primary surpluses.
According to the minister, it is “a budget that highlights the strength and increased resilience that the Greek economy has shown during successive crises, records its stable, strong and sustainable development course, as well as the significant – more than 5 units , in relation to 2019- a decline in unemployment, while reflecting the great potential and positive prospects of the country”.
As pointed out by Mr. Staikouras in APE-MPE, this is “data that the European Commission also confirms, since it predicts that in 2022 Greece will present an economic growth rate twice the European average and the third highest in the Eurozone and three times the European average in 2023”. And he adds: “of course, we do not overlook that the international environment remains unstable, full of high uncertainties, rising risks, new threats and great volatility, affecting our country as well.”
In this context, reliable information indicates that the Greek economy will grow this year at a rate close to 5.5% (against 5.3% of the forecast in the draft), while next year, due to geopolitical developments, the rate will be a little lower than the 2.1% of the draft. At the same time, this year a primary deficit close to 1.7% of GDP is expected to be recorded (as mentioned in the draft), while in 2023 there will be a primary surplus in the region of 0.7% of GDP. A “thorn” will be inflation, which will hover around 10% this year, only to decline next year.
Particularly important, based on the data available to the Ministry of Finance, is the fact that the public debt decreased last year by 13 units as a percentage of GDP, while this year it will decrease by an additional 25 units of GDP and in 2023 another 10 units of GDP. That is, in three years the public debt will have decreased by approximately 50 points as a percentage of GDP, giving a “strong signal” to the markets and rating agencies.
“That’s why”, says Mr. Staikouras, “our main aim, as reflected in the budget, is to maintain, on the one hand, the development path of our country, while continuing to support society at the same time, with measures that are part of the framework of our fiscal capabilities, thus ensuring fiscal stability.”
And in his exclusive statement to APE-MPE, the finance minister concludes by saying: “our goal is to “build” on what we have laboriously achieved, to further strengthen our economy and improve the everyday life and prospects of every citizen. It is the responsibility – of all of us – towards the present and the future of our country, towards the sacrifices of the citizens and the prospects of the new generation. With responsibility, prudence and hard work we will succeed.”
RES-EMP
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I am Janice Wiggins, and I am an author at News Bulletin 247, and I mostly cover economy news. I have a lot of experience in this field, and I know how to get the information that people need. I am a very reliable source, and I always make sure that my readers can trust me.
