By T. Tsiros
[email protected]
Greece’s finance ministry experts are reportedly hashing out a 2021 draft budget that envisions an increase in the country’s public debt, in absolute terms, but a significant decrease in the debt as a percentage of GDP.
The draft budget is expected to be tabled in Parliament in early October.
At present, the current – and tumultuous – year is expected to see the Greek government debt balloon to 340 to 342 billion euros, with the ratio of GDP-to-debt at roughly 200 percent.
One forecast, on the positive side, is that the ratio in 2021 could be trimmed to 190 percent of GDP.
Based on a forecast of economic growth of 5 to 6 percent for 2021, GDP could reach 180 billion euros, up from a level of 170 to 172 billion euros for the current year, which has been battered by the Covid-19 pandemic and its repercussions on the economy.
The recession for 2020 is forecast to slash GDP by 8 to 9 percent.
Conversely, Greece is expected to bank on significant EU funds flowing into the country in 2021.
