IMF: Greece will return to primary budget surpluses from 2023

IMF International Monetary Fund Greece

Greece will reduce its public debt this year and will return to primary budget surpluses from 2023, the International Monetary Fund in a report released on Wednesday.

The IMF report projected that the general government's deficit will reach 10.2% of GDP this year, from 10.5% in 2020, to drastically fall to 4.3% in 2022 and to continue falling to 1.6% of GDP in 2026.

The primary deficit - excluding interest payment on public debt - is projected to fall to 7.3% of GDP in 2021 from 7.5% last year and to drastically fall to 1.3% in 2022, while it expects the primary deficit to return to surplus of 0.2% in 2023, rising to 1.5% in 2026.

Public spending in Greece is expected to fall from 60.7% of GDP in 2020, to 59% this year and 52.4% in 2022, falling to 48.3% of GDP in 2026.

Public revenue is projected to fall to 48.1% of GDP in 2022 and 2023, from 48.8% this year, falling to 46.8% in 2026.

Greece's debt hit 211.2% of GDP in 2020, and it is projected to fall to 206.7% in 2021 and to 179.6% in 2026.

READ MORE: Greek economy to recover 2020 losses by end of 2022.