Greek finance minister vows to keep debt’s share of economy shrinking | eKathimerini.com
www.ekathimerini.com
Greek Finance Minister Kostis Hatzidakis told Reuters that the government will maintain fiscal prudence to safeguard its growth path and emergence from a debilitating debt crisis a decade ago, even amid higher wage demands by striking teachers and ferry workers.

Tourism-dependent Greece currently is experiencing one of the highest growth rates in Europe, with the government forecasting 2.2% growth for 2024 and the IMF forecasting 2.3%. This is well above the weak overall 0.8% IMF growth forecast for the euro zone, where industrial economies including Germany and Italy are struggling.

Greece’s finance ministry has committed to early repayment of some $8 billion in bilateral debt in 2026, 2027 and 2028, estimating that this would push down the country’s debt-to-GDP ratio – Europe’s highest – from 162% this year to 149% in 2025 and 133.4% by 2028.

If it stays on that path, Greece’s debt-to-GDP ratio in 2028 would be lower than Italy’s, which Rome has forecast at 135.8% this year, rising to 137.5% in 2027.