IMF forecasts lower primary deficit in 2022, return to primary surplus in 2023

The Greek general government primary deficit will drop from 5.9 pct in 2021 to 1.9 pct in 2022 and then return to primary surpluses in 2023, according to the International Monetary Fund (IMF) Fiscal Monitor released on Wednesday.

This forecasts a primary surplus of 1.1 pct of GDP in 2023, which will gradually increase to reach 2 pct by 2027.

The total government deficit, including payment of interest to service public debt, is expected to decrease from 8.7 pct of GDP in 2021 to 4.8 pct of GDP in 2022 and continuing declining to reach 0.9 pct of GDP in 2027.

The general government public debt is forecast to drop to 185.4 pct of GDP in 2022, from 198.9 pct in 2021, and gradually decline to 160.7 pct of GDP in 2027.

Public spending is seen declining from 57.9 pct of GDP in 2021 to 53.1 pct in 2022 and to continue dropping, reaching 45.7 pct in 2027. There will also be a decline in public revenues from 49.1 pct of GDP in 2021 to 48.3 pct in 2022 and 44.8 pct in 2027.