IMF Sees Greek Debt Rising to 200.9% of GDP This Year

Αssociated Press

(AP Photo/Cliff Owen, FILE)

ATHENS - Greece's fiscal deficit will soar to 9.0 pct of GDP this year, falling to 7.9 pct in 2021, the International Monetary Fund said in its Fiscal Monitor report released on Wednesday.

The IMF's technocrats expect the country's primary balance to show a deficit of 5.1 pct of GDP in 2020 and a shortfall of 4.4 pct in 2021, while the general government's gross debt is projected to jump to 200.9 pct of GDP this year, easing to 194.8 pct in 2021.

The IMF also noted that the management of the coronavirus crisis will have long-term consequences on the course of state revenue and spending, with revenue easing to 45.8 pct of GDP this year and to 45.3 pct in 2021. On the other hand, spending is expected to reach 54.8 pct of GDP in 2020 - up 6.9 pct from last year - easing to 53.2 pct of GDP in 2021.

The International Monetary Fund also said this year's global economic output will shrink by 3%, a bigger loss than 2009's 0.1% decline during the financial crisis. That was a sharp reverse from the Fund's January forecast of 3.3% growth before the virus prompted governments to shut down factories, travel and other industries.