Greek budget data shows commitment to fiscal consolidation, Fitch Ratings said

27 April 2018
921 Views

Greece’s second-consecutive budget surplus demonstrates the authorities’ continuing commitment to fiscal consolidation, Fitch Ratings said on Thursday.

This supports Fitch’s expectation of improving debt sustainability in Greece, although how far and how fast public debt will fall will largely be determined by the nature of the debt relief currently under discussion by Greece’s international creditors, the credit agency said in a statement.

The latest figures show that Greece’s budget surplus hit 0.8 percent of economic output in 2017, up from 0.6 percent a year earlier, representing significant fiscal outperformance by Greece.

“We think primary surpluses may fall below these targets beyond 2020, but we still believe gross general government debt (GGGD) peaked in 2016 and will fall more rapidly from next year, reaching 137% of GDP by 2025, assuming annual average nominal GDP growth of 3.5%, but not factoring in any future official sector debt relief,” Fitch said.

“Our baseline assumption sees GGGD falling further, to 132.8% of GDP in 2026. This would still be higher than the current level for Italy – the eurozone’s second most-indebted sovereign – although the concessional nature of Greece’s public debt means that debt servicing costs are low,” it added.

Source: thegreekobserver

You may be interested

PM Mitsotakis cites Greek Constitution to back mandatory vaccinations
GREECE
shares20 views
GREECE
shares20 views

PM Mitsotakis cites Greek Constitution to back mandatory vaccinations

makis - Jul 23, 2021

Prime Minister Kyriakos Mitsotakis cited the Greek Constitution in response to those opposing mandatory Covid-19 vaccination during his meeting with…

Who Has Spent The Most Time In Space? (infographic)
WORLD
shares31 views
WORLD
shares31 views

Who Has Spent The Most Time In Space? (infographic)

Panos - Jul 22, 2021

As Russia celebrates 60 years since Yuri Gagain became the first person to orbit the Earth, the state of space travel looks…

What Do Americans Think Of Famous Billionaires? (infographic)
FINANCE
shares33 views
FINANCE
shares33 views

What Do Americans Think Of Famous Billionaires? (infographic)

Panos - Jul 22, 2021

Hot on the heels of fellow billionaire Richard Branson, Amazon founder Jeff Bezos is set to blast into space. He…

Leave a Comment

Your email address will not be published.