ATHENS – The Greek state budget recorded a primary deficit of 5% of GDP in 2021, down from a budget target for a deficit of 7%, while the country’s public debt also fell as a percentage of GDP, Eurostat said in a report on Thursday.

This positive development offers more room for additional generous interventions by the government as a shield against price increases. In absolute numbers, the resulting additional space amounts to 3.5 billion euros. The finance ministry will send its updated forecasts for fiscal deficit, economic growth and inflation for 2022 to the European Commission on April 30. According to sources, the growth rate is expected to reach 3% this year, down from an initial target for a 4.5% growth rate, and the inflation rate is seen reaching an annual average rate of 5.5% (the budget envisaged an average harmonised rate of 0.8%).

Eurostat said the general government’s deficit fell to 7.4% of GDP in 2021, from 10.2% in 2020, while the primary deficit fell to 5% from 7.2% of GDP, respectively, and the general government’s debt eased to 193.3% of GDP from 206.3% a year earlier. The Greek GDP reached 182.83 billion euros in 2021, from 165.326 billion in 2020 and 183.250 billion in 2019.