Greece reported a record primary surplus of €8.6 billion in 2024, significantly surpassing the target of €4.6 billion. Economy Minister Kostis Hatzidakis attributed the success to increased revenues from reduced tax evasion and stronger-than-expected growth. Looking ahead to 2025, the government plans further tax cuts for the middle class and a focus on microeconomic policies to boost investments, exports, and economic competitiveness.
Provisional data from the state budget execution for January to December 2024 revealed a total budget surplus of €300 million, compared to a targeted deficit of €3.6 billion and a €3.76 billion deficit recorded for the same period in 2023.
Economy and Finance Minister Kostis Hatzidakis highlighted the milestone during the launch of the Synergia think tank in Athens on Thursday. He noted that Greece’s primary surplus is close to 3% of GDP, with the fiscal deficit approaching zero—a significant achievement amid global economic instability.
“This sends a very strong message in times of instability that Greece can withstand even strong winds,” Hatzidakis said.
The surplus was attributed to increased government revenues, including €2 billion recovered from reducing tax evasion—a historic performance since the post-colonial period—and stronger-than-expected economic growth.
The minister emphasised the government’s commitment to fiscal prudence, which enabled these results, and announced plans to redirect the additional revenues back to society through further reductions in direct taxes.
Looking ahead, Hatzidakis outlined the government’s focus for 2025, with an emphasis on microeconomic policies. Priorities include attracting investments, boosting exports, strengthening competition, and enhancing the overall competitiveness of the Greek economy.
“For 2025, barring an unforeseen international crisis, we plan significant tax reductions for the middle class,” he said, adding that these measures will be supported by continued efforts to combat tax evasion.
The government also plans to announce further salary increases and tax cuts at the Thessaloniki International Fair in the autumn, according to Hatzidakis.
By maintaining fiscal stability and transitioning focus to economic growth at the microeconomic level, Greece aims to sustain its economic momentum and build a resilient, competitive economy.
(Source: Amna)
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