The primary surplus at the end of 2023 exceeded the target according to the initial estimate by ELSTAT.
According to the data, the primary surplus reached €4.01 billion or 1.9% of GDP, whereas it was zero the previous year.
GDP in 2023 increased to €220.3 billion compared to €206.6 billion in 2022 and €181.5 billion in 2021.
Based on ELSTAT data, Greek debt declined to €356.7 billion at the end of 2023 compared to €356.8 billion at the end of 2022.
The decrease in absolute numbers is marginal, but as a percentage of GDP, it is significant.
Specifically, it decreased from 172.7% of GDP in 2022 to 161.9% of GDP at the end of 2023.
According to Eurostat, Greece had the second-largest percentage decrease in the debt-to-GDP ratio (-10.8% on an annual basis) in the EU after Portugal.
The resilience of the Greek economy and the steady fiscal policy led to the achievement of the fiscal targets for 2023, according to the Ministry of Finance and based on the data published by ELSTAT.
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The exceeding of the target regarding the primary surplus has implications in four areas:
Firstly, in the faster reduction of public debt. Based on the above result, the debt-to-GDP ratio decreased from 172.7% in 2022 to 161.9% in 2023.
Secondly, in creating a better starting point for achieving the fiscal targets of 2024, despite international upheavals and the slowdown in international and European growth rates.
Thirdly, in creating more flexibility margins regarding the country’s four-year fiscal planning due to debt containment.
Fourthly, this result sends a strong signal to the international markets that the Greek economy is strengthening and developing beyond targets, despite the difficulties and extraordinary events faced by the country (natural disasters, international crises, double national elections, etc.) during the previous year.