Greece submits 2020 budget draft, foresees 2.8 pct growth for next year

The Greek government on Thursday submitted to parliament for approval its 2020 budget draft which contains a 2.8-percent growth rate and a primary budget surplus of nearly 3.6 percent of GDP for the coming year.

In the first full year under the new government of New Democracy party, the Greek Finance Ministry projects the primary budget surplus forecast to be higher from the annual 3.5 percent fiscal target, with debt falling to 167 percent of GDP from 173.3 percent this year.

After a decade of debt crisis, the country recovers and the Greek economy is on track for stronger growth with higher investments, improving domestic demand and tax cuts.

The finance ministry estimates that unemployment will decline to 15.6 percent of the workforce next year from 17.4 percent in 2019.

The basic priority of the budgetary strategy for 2020 is to increase the growth rate, reduce over taxation, boost investments and support the vulnerable social groups, along with the achievement of the fiscal goals in the framework of the post-program monitoring of the country.

The European Commission approved the Greek draft budget on Wednesday in a report presenting its opinion on the draft budgetary plans of all Eurozone member states. Greece’s 2020 draft budget plan is “compatible” with the Stability and Growth Pact, the Commission said.