FINANCE

Final growth estimate to be at 6.9%

final-growth-estimate-to-be-at-6-9

An extra billion euros is to be added to the government’s estimates for this year’s gross domestic product, raising its nominal level to €177 billion and the growth rate to 6.9%.

There will also be an upward revision to the 2022 GDP, as sources say that the final budget draft will provide a figure of €183.7 billion, with the growth rate at 4.5% – i.e. practically the same as in the draft tabled last month.

There will be no change in the forecast on the course of the national debt, which is projected to come to €350 billion in 2021 and €355 billion in 2022. 

The general government debt to GDP ratio is expected to amount to 197% for this year and 189.5% next year. Still, there may well be modifications over the course of the year, concerning both GDP and the debt.

The Ministry of Finance has chosen to make a more conservative estimate regarding the course of the economy for this year, so as to leave open the possibility of even higher GDP data by the end of the year, and of an early repayment of Greece’s dues to the International Monetary Fund and fellow eurozone states. That should bring down the final level of the government debt.