Bank of Greece: “Alarm bells” for this year’s surplus
The Governor of the Bank of Greece, Yiannis Stournaras characterized the target for a primary surplus of 3.5% for this year as “unattainable”. Speaking at an investment conference, Mr. Stournaras estimated that Greece will achieve a primary surplus of 2.9% of GDP this year against the target of 3.5% of GDP, while stressing that high primary surpluses burden the growth of the economy.
He said, “the budget outcomes of the general government, from a deficit of 15.1% of GDP in 2009, recorded, for the third consecutive year, a surplus of 2018 (1.1% of GDP). The primary balance as a percentage of GDP (i.e. the balance of the general government excluding interest expenses) has improved by more than 14 percentage points since 2009 (then it was a deficit of 10.1% of GDP), and records a surplus over the last three years. In 2018, the primary balance (in terms of enhanced supervision) stood at 4.3% of GDP against a target of 3.5% of GDP. For 2019, the forecast of the Bank of Greece with the data available so far is a primary surplus of 2.9% of GDP against a target of 3.5% of GDP.”
At the same time, Mr Stournaras called for the targets for primary surplus to be reduced until 2022, as well as tax rates.
You may be interested

Greek Foreign Ministry harsh response to Turkey on Pontian Genocide: You are getting exposed
makis - Dec 09, 2019The Greek Foreign Ministry’s responded in a sharp tones to the Turkish Foreign Ministry’s provocative statement which berated Kyriakos Mitsotakis…

The Ancient Greek roots of Feta Cheese
Panos - Dec 09, 2019As Greece fights to maintain the name of feta cheese as a Protected Designation of Origin (PDI) product, the Real…

Artwork of banana sold for $120,000 eaten by another artist
Panos - Dec 09, 2019An artwork of an overripe banana duct-taped to a wall that sold for $120,000 (£91,000) has been eaten by a…