The forecasts for its development bring smiles to the government’s financial staff Greek economy.
Moody’s was followed by another investment firm, which speaks of high GDP flights at more than double the initial budget estimates. This fact makes the Minister of Finance speak openly for the first time about a new round of tax cuts if the specific scenarios are of course confirmed.
And maybe the growth target was set by the government at 5.9%, the rating agencies do not hide their optimism and they are outbid one after the other, raising the forecasts for the Greek economy higher and higher. UBS forecasts a growth rate of 7.9%, while Capital Economics raises the bar to 8.5%.
If the scenario is confirmed and growth rises from 6% to 8.5%, then an extra fiscal space of 1.3 billion euros is created. Note, however, that this does not mean that this amount can be used immediately, as there are intermediate stages.
The two important milestones
The submission of the budget on November 20 is the first positive milestone according to what SKAI reports. Then the decisions are expected to be made for ENFIA, for which the government has announced an average reduction of 8%, while the scenario of the abolition of the additional tax is “running”.
The second milestone follows on December 6, when the Statistical Service will announce the estimates for the course of GDP in the third quarter of the year.
These are particularly important estimates, as they will indicate the “components” of growth and whether they have permanent characteristics that will pass not only in 2022, but will pave the way for 2023. Then, the abolition of the solidarity levy will be judged for retirees and civil servants and permanent reductions in insurance contributions.
The messages from the issue of unemployment, which recorded a low of a decade and in July 2021 reached 14.2%, are also optimistic, while employment reached a record high of over 4 million for the first time since 2010.
It should also be noted that the new round of retroactive payments from October to December is coming to 170,000-200,000 retirees, who are expected to receive amounts up to 1,000 euros.
The article Greek economy: Growth forecasts at 8.5% published in NewsIT .