IMF: Athens won’t meet primary budget surplus targets; spending ‘cutter’ activation predicted
The IMF foresees activation of an automatic spending cuts mechanism in Greece next year, saying the Greek government will not meet primary budget surplus targets, as a percentage of GDP, for 2017.
In a bid to prevent fallout, finance ministry sources emerged late Wednesday evening to counter the forecast, saying that the execution of the budget to date makes the 0.5-percent goal for a primary budget surplus easily attainable.
The IMF’s ominous prediction for activation of the spending mechanism comes in contrast with its forecast for GDP growth in Greece in 2017, which at a hefty 2.8 percent even exceeds the Greek government’s, which is listed in the draft budget submitted on Monday as 2.7 percent.
Although the primary budget surplus goal for 2016 is 0.5 percent of GDP, the IMF cited a figure of just 0.1 percent, whereas the government has
already provisioned a 0.6-percent figure for 2016 in its draft budget for 2017.
Looking to 2018 and the very ambitious goal of 3.5 percent, the IMF essentially considers it an unattainable dream, with the Greek economy until 2021 not reaching even half of the targets.
You may be interested
Cyprus green lights cannabis for medical purposesPanos - Jul 27, 2017
The Cabinet approved a bill legalising the cultivation and commercial exploitation of medicinal cannabis in Cyprus during Wednesday’s Cabinet meeting.…
Acropolis Museum open until midnight for August full moon; concert also scheduledPanos - Jul 27, 2017
The New Acropolis Museum, the country’s most popular and cutting-edge museum, will again mark August’s full moon with special events.…