ECONOMY

Greek budget: Economy to grow 2.8 pct in 2020 on investments, lower taxes

greek-budget-economy-to-grow-2-8-pct-in-2020-on-investments-lower-taxes

Greece expects its economy to grow by 2.8 percent next year, driven by higher investments, improving domestic demand and tax cuts as the country recovers from a decade-long debt crisis.

Data from the 2020 budget, formally submitted to parliament for approval on Thursday, also forecast a primary surplus of 3.56 percent of GDP next year, with debt falling to 167 percent percent of GDP from 173.3 percent this year.

There are no specific plans in the budget to tap debt markets next year, but it said the state’s strategy is to ‘maintain a presence as an issuer in markets’.

It will also try to further improve the ratio of fixed-rate debt as a percentage of total outstanding government debt.

The country emerged from its third international bailout last year and fiscal progress is still being monitored by its euro zone lenders, who project 2.3 percent economic growth in 2020 —more than the euro area average of 1.2 percent.

Greece has promised to deliver a primary budget surplus — which excludes debt servicing costs — of 3.5 percent of GDP each year until 2022, falling to 2.2 percent thereafter.

[Reuters]