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- Greece sees growth in 2020, putting it on track for fiscal goals
Greece sees growth in 2020, putting it on track for fiscal goals
Greece’s government is forecasting 2.8% economic growth in 2020, putting the country on track to meet a primary surplus target it agreed on with creditors while still enacting tax relief measures.
The creditors, however, have warned that the cost of polices Prime Minister Kyriakos Mitsotakis’s government has committed to will create a shortfall of up to 900 million euros toward meeting the target of a primary surplus at 3.5% of gross domestic product for 2020.
Greece’s finance ministry insists the target will be met and sees a primary surplus of 3.56% of GDP next year.
The two sides are set to continue talks to bridge the gap until October 15, when Greece and other European Union members must submit budget plans for 2020.
The government’s budget plan “secures fiscal space to reduce taxes and promote growth while at the same time covering the fiscal gap inherited by the new government for 2020 (as well as this year),” Deputy Finance Minister Theodoros Skylakakis said.
Unemployment is expected to decline further, to 15.6% in 2020 from 17.4% in 2019, while investment is expected to increase by 13.4%. Private consumption is seen rising 1.8%.
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