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
The Real Star Wars Universe – The countries the global franchise was shot in (infographic)Panos - Aug 03, 2021
May the fourth was a good day for fans of the Star Wars franchise and wordplay so, being both of…
Russia replaces the dollar with the ruble & national currencies on armaments programsPanos - Aug 03, 2021
According to a report by the Russian news agency TASS, Russia has stopped accepting payments in US dollars, for armament…