IMF: Greece Will Return to Primary Budget Surpluses from 2023

Αssociated Press

(AP Photo/Cliff Owen, FILE)

ATHENS -- Greece will reduce its public debt this year and will return to primary budget surpluses from 2023, the International Monetary Fund in a report released on Wednesday.

The IMF report projected that the general government's deficit will reach 10.2% of GDP this year, from 10.5% in 2020, to drastically fall to 4.3% in 2022 and to continue falling to 1.6% of GDP in 2026. The primary deficit - excluding interest payment on public debt - is projected to fall to 7.3% of GDP in 2021 from 7.5% last year and to drastically fall to 1.3% in 2022, while it expects the primary deficit to return to surplus of 0.2% in 2023, rising to 1.5% in 2026.

Public spending are expected to fall from 60.7% of GDP in 2020, to 59% this year and 52.4% in 2022, falling to 48.3% of GDP in 2026.

Public revenue is projected to fall to 48.1% of GDP in 2022 and 2023, from 48.8% this year, falling to 46.8% in 2026. The general government debt hit 211.2% of GDP in 2020, and it is projected to fall to 206.7% in 2021 and to 179.6% in 2026.