The great debt reduction that Greece has achieved in the last four years is praised by the economist of Oxford Economics, Daniel Krall.
According to the Czech economist's analysis, the cumulative drop in debt as a percentage of GDP in Greece from the end of 2019 to date was the largest of any country in the Eurozone.
Even in a changing world, the French government can always be relied on to rock up the highest debt... pic.twitter.com/PCrBkH6ZjE
— Daniel Kral (@DanielKral1) October 26, 2023
In fact, according to him, the largest cumulative increase was observed in France and Spain.
As the Czech mathematician and scientist emphasises, this happened despite the huge support programs for households and businesses in our country.
Inflation has not been the main driver behind the recent large reductions in debt-to-GDP ratios in Southern Europe, it is a lazy assumption to make (after all, GDP deflator shot up a lot less than CPI). Strong growth has been much more important. https://t.co/5ronCBBJMj pic.twitter.com/EK11WvyZqt
— Daniel Kral (@DanielKral1) October 21, 2023
The same analyst has also shown that the fall in Greece's debt-to-GDP ratio did not come primarily from inflation, but from cumulatively higher growth.
Greek budget showed a primary surplus of 5.987 billion euros in Jan-Sept
Greek state budget showed a primary surplus of 5.987 billion euros in the January-September period, up from a budget target for a surplus of 2.436 billion and a surplus of 52 million in the same period last year, reflecting higher VAT receipts and higher income tax revenues.
The National Economy and Finance Ministry in a report said that the general government budget showed a deficit of 397 million euros in the 9-month period, from a budget target for a deficit of 2.704 billion and a shortfall of 4.221 billion in the same period last year.
Net revenue was 48.296 billion euros, up 23 million from targets, while regular budget revenue was 53.281 billion euros, up 1.1% from targets.
Tax revenue amounted to 44.916 billion euros, up 7.4% from targets as VAT revenue were up 779 million to 17.201 billion euros, special consumption tax revenue was 5.192 billion, down 100 million from targets, property tax proceeds totaled 14.918 billion, up 1.614 billion from targets, transfers revenue were down 2.133 billion euros to 4.979 billion, revenue from sale of goods and services fell 1.6 billion from targets to 639 million, while Public Investment Programme revenue was 2.701 billion, down 899 million from targets.
Tax returns totaled 4.985 billion, up 561 million from targets.
Budget spending totaled 48.693 billion euros, down 2.284 billion from targets, but up 449 million from the same period last year. Regular budget spending fell 1.165 billion euros from targets. Public Investment Programme totaled 6.568 billion euros, down 1.119 billion from targets.
In September, budget revenue was 5.178 billion euros, down 39 million from targets, while regular budget revenue was 5.646 billion, down 250 million from targets. Tax returns totaled 468 million euros, down 212 million from monthly targets, while Public Investment Programme revenue was 349 million, up 89 million from targets.
ECB's Lagarde in Athens: Greek economy and people an example of resilience
European Central Bank (ECB) President Christine Lagard, in Athens for the ECB board meeting on Wednesday and Thursday, praised the return of Greek economy to health following the crisis.
She also noted the efforts of the Greek people, during a formal dinner provided in her honor by Bank of Greece (BoG) Governor Yannis Stournaras, who is hosting the meeting at BoG premises.
Greece's economy, Lagarde said, could serve as an inspirational example in very uncertain times in terms of resilience, and as an example of the importance of being part of a common European fate.
From 2008 to 2016, the ECB head said, Greece's GDP shrank by over a quarter, unemployment rose by 20 percentage points at its apex, and catastrophe hit again with the coronavirus pandemic just as the economy was starting to recover and reforms give results. Greece has been at the forefront of global challenges that Europe faces, including climate crisis and the migration crisis, she also added.
The resilience of the country was noteworthy however, as the current per capita GDP is 10% above the pre-pandemic level - a much stronger performance than the Eurozone in total - and unemployment has also dropped dramatically, to 10.9% in August, the lowest it has been since the end of 2009.
It is not just the resilience of the Greek economy, she added, it is also the resilience of the Greek people that is noteworthy, remaining committed to Europe through difficult times.
The governors of the national central banks of the eurozone and the six members of ECB's executive committee are meeting at BoG's headquarters in central Athens to decide on monetary policy.
After the meeting, the ECB will publish the ECB's interest rates and other instruments, and following that, Lagarde with ECB Vice-President Luis de Guindos and Stournaras will provide an in-depth explanation of the reasons behind the latest monetary policy decisions at a press conference on Thursday afternoon.
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