At significantly lower levels than the target, it was finally formed primary deficit in 2021, according to Eurostat data, while the reduction of public debt as a percentage of GDP was impressive.
More specifically, the deficit was set for 2021 at 5%, against a target of 7%, which paves the way for brave interventions – a shield against accuracy. Of course, no direct fiscal space is created, and this is because the country produces deficits and not surpluses.
However, the movements are facilitated, since there is an “air” of two percentage points in which the country can move within 2022. In absolute numbers, the amount that is “released” is of the order of 3.5 billion euros.
It should be noted that according to the plan, on April 30 the Ministry of Finance will send to the Commission the updated forecasts for deficit, growth and inflation in 2022 in the aftermath of the war in Ukraine and the energy crisis.
According to information, the growth rate is expected to be reduced to 3% this year against a target of 4.5% and inflation at average levels is expected to reach close to 5.5% when the budget has been passed with an assumption of an average harmonized index of 0.8%. .
According to Eurostat data released by ELSTAT, the general government deficit fell to 7.4% of GDP from 10.2% in 2020 last year, the primary deficit to 5% from 7.2% of GDP and general government debt was reduced to 193.3% of GDP from 206.3% a year earlier.
Finally, it should be noted that Eurostat data do not incorporate the slightest asterisk, while in terms of 2020 compared to last October’s estimates there is no change in the debt estimate and a marginal revision in the deficit of 10.1% of GDP is recorded. at 10.2% of GDP.
GDP in 2021 is estimated at 182.83 billion euros from 165.326 billion in 2020, marginally lower than the 183.250 before the pandemic in 2019.
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