IMF: Greek debt will decrease to 138.8% of GDP by 2029

The IMF provides that Greece’s debt will be reduced by 30 units by 138.8% in 2029 by 168.8% in 2023. According to the report, Greece will record an average primary surplus of more than 2% by 2029, which will help reduce debt-to-GDP ratio, ranked first among the countries of Europe. Overall for the Old Continent, the Fund points out that since the pandemic, public debt has increased with forecasts for several countries to be quite ominous. “The carefully planned medium-term consolidation is the key to addressing debt sustainability risks while supporting growth,” the report says, warning that ‘some countries should rapidly abolish non-targeted fiscal support measures, give priority to expenditure and improve their effectiveness, while others may need additional revenue support measures,” he adds. The needs for state support are still high with the situation becoming worse than increased interest rates. Pressures on issues such as defence, climate change and demographics are also important, the IMF says. With regard to forecasts for the progress of European countries, the IMF estimates that Italy’s public debt will continue to rise by 144.9% of GDP in 2029 from 137.3% in 2023, France will reach 115.2% of GDP from 110.6%, Belgium at 115.6% versus 104.5%, while Spain will retreat to 104.2% from 107.5%.