IMF: Greek Growth in 2024 at 2%; Debt to Ease to 158.8% of GDP This Year

The International Monetary Fund (IMF) on Wednesday forecast that Greek debt will ease to 158.8% of the GDP this year – down by 10 percentage points – with the country posting a primary surplus of 2.1 per cent of GDP.

At the same time, the IMF predicted that real GDP growth in 2024 will be 2%, while projected consumer prices will rise by 2.7% this year and 2% in 2025, the organization announced.

The forecast is lower than the 2.1% GDP rise made in January 2024, but still more optimistic compared to the downward revision for the Eurozone (0.8% compared to the previously projected 1.2% in October 2023).

In 2025, Greece is projected to post a higher growth rate than the Eurozone average (1.9% compared to 1.5%).

In forecasts included in its Fiscal Monitor, the IMF estimates that the primary surplus will remain at 2.1% of GDP until 2029.

Taking interest rates on public debt into account, a government budget deficit of 0.9% of GDP is forecast for 2024, rising to 1.4% by 2029.

The IMF forecasts that primary surpluses will fuel a steady decrease in Greek public debt, leveling off to 138.8% of GDP in 2029.

Similarly, the public debt for the entire eurozone is forecast to ease to 87.7% of GDP in 2029, down from 88.6% in 2023.