Greek Economy to Grow by 7.5% in 2021, Draft State Budget

ATHENS — Finance Minister Christos Staikouras and Alternate Minister Theodoros Skylakakis on Monday tabled to Parliament the draft plan for the 2021 state budget which envisages an economic growth rate of 7.5 pct for the next year, along with a series of measures to lower the tax and social insurance burden for enterprises with the aim to boost recovery and create new job positions.

The draft budget plan envisages a primary deficit of 1.0 pct in 2021.

More specifically, the draft budget plan envisages an 8.2 pct economic contraction this year and a 7.5 pct growth rate in 2021 to 185.215 billion euros from 170.721 billion in 2020. The primary deficit will reach 6.3 pct of GDP this year and 1.0 pct of GDP in 2021. The unemployment rate is projected to reach 18.6 pct in 2020, falling to 16.5 pct in 2021. Budget revenue is projected at 53.705 billion euros in 2021 from 50.147 billion this year, with tax revenue rising to 49.546 billion euros from 44.594 billion, respectively. Budget spending is project at 63.884 billion euros in 2021 from 68.528 billion this year.

Finance Minister Christos Staikouras, commenting on the draft budget plan said it was drafted during period in which the global economy and societies continued to be tested by the most serious health crisis of the last 100 years and the resulting worst annual global economic recession since the end of the World War II. "The 2021 state budget is drafted, unfortunately, under odd and extremely adverse conditions and in a state of serious uncertainty," he said, adding that this uncertainty forced European institutions to decided the extension of more flexible fiscal policy in 2021 to protect, as much as possible, the productive and social fiber from the impact of the pandemic. Staikouras said that EU funds safeguarded by the Greek government from the Recovery Fund and the React EU will add two percentage points to economic growth in the country in 2021, from 5.5 pct (base scenario) to 7.5 pct (final provision). Under the adverse scenario, however, economic growth will reach 4.5-5.0 pct in 2021.

Staikouras said that a provision for a dynamic economic recovery in 2021 is also based on measures to lower the tax and social insurance burden on enterprises to encourage job creation, such as lowering social insurance contributions by three points, abolishing a solidary contribution tax and hiring new workers without social insurance contributions for up to six months. The 2021 budget also envisages, for safety reasons, to maintain a capital buffer to deal any future needs.


ATHENS - The biggest problem on Greeks minds - soaring supermarket prices - has seen the New Democracy government scrambling to deal with it and Development Minister Kostas Skrekas said prices will fall on March 1.

Top Stories


A pregnant woman was driving in the HOV lane near Dallas.

General News

NEW YORK – Meropi Kyriacou, the new Principal of The Cathedral School in Manhattan, was honored as The National Herald’s Educator of the Year.


By Defining Sex, Some States Are Denying Transgender People Legal Recognition

TOPEKA, Kan. (AP) — Mack Allen, an 18-year-old high school senior from Kansas, braces for sideways glances, questioning looks and snide comments whenever he has to hand over his driver's license, which still identifies him as female.

WASHINGTON (AP) — As he prepared to take office three years ago, Joe Biden's incoming administration considered a host of possible options to fulfill a campaign pledge to end the federal death penalty.

American consumers are feeling less confident this month as concerns over a possible recession grew.

MILAN (AP) — Conductor Gianandrea Noseda made a triumphant return to Teatro alla Scala in an informal role as cultural ambassador, leading the U.

Sixty-four percent of American travelers demand comfort and more innovative green options.

Enter your email address to subscribe

Provide your email address to subscribe. For e.g. [email protected]

You may unsubscribe at any time using the link in our newsletter.