Greece’s 2016 budget sees milder economic contraction


Greece's final 2016 budget plan projects a milder contraction than previously forecast with the economy expected to shrink by 0.7 percent next year.

The budget, submitted to parliament on Friday, maintained a primary surplus target of 0.5 percent of gross domestic product in 2016 and projected privatisation revenues of 1.9 billion euros, lower than a 3.7 billion euro target under its bailout.

The leftwing government expects to tap bond markets in the second half of 2016, the budget plan said.

Public debt is projected to reach 187.8 percent of GDP in 2016 from 180.2 percent this year.