Greece’s fiscal path continues to surprise positively, creating room for maneuver in an environment of mounting economic pressures, - reports.
Greece likely exceeded key fiscal targets for 2025 by at least one percentage point of GDP, offering room to support citizens amid a slowing economy, according to reports.
The primary surplus is estimated at 4.8% to 4.9% of GDP; this level is well above the 3.7% target.
Similarly, the overall fiscal surplus is likely to reach around 1.6% of GDP, exceeding the 0.6% target.
The final figures may vary slightly before the publication of official European Union data on April 22. However, the overall picture is expected to remain significantly better than initial forecasts.
If the estimates are confirmed, 2025 will be the fourth consecutive year in which Greece exceeds its fiscal targets.
Time for benefits and tax cuts
The government has, in the past, used the extra fiscal space to provide aid to households and businesses, as well as to reduce taxes.
This possibility takes on particular importance this year as the economy is under pressure from geopolitical developments in the Middle East. GDP growth for 2026 is now estimated to be close to 2%, compared with a previous forecast of 2.4%.
For this year, the authorities have set a primary surplus target of 2.8%, which already looks likely to be exceeded based on budget execution so far.
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