Greece’s Economic Triumph: Primary Surplus Exceeds Expectations at 3.5% of GDP

Greece has once again exceeded economic forecasts, with a central government primary surplus of 3.5% of GDP in 2024, much above the government’s objective of 2.5%. Outgoing Finance Minister Kostis Hatzidakis announced the remarkable results on Saturday, emphasizing the country’s budgetary discipline and financial recovery.

Greece’s Fiscal Resilience and Rising Surplus:

Greece’s financial recovery is gaining steam despite the country being on the verge of economic disaster over the last decade. The primary surplus, excluding debt-servicing expenses, is crucial to the nation’s financial sustainability. Hatzidakis stated that when the final data are announced next month, the primary surplus would be around 3.5% of GDP, with a fiscal surplus of 0.2%. This fiscal performance demonstrates Greece’s commitment to sustaining economic stability and reaching rigorous financial objectives, a critical component of the country’s post-bailout obligations to foreign creditors.

Political upheaval with Economic Expansion:

While Greece celebrates this economic milestone, the government is going through major political upheavals. Prime Minister Kyriakos Mitsotakis announced a cabinet change on Friday, naming Kyriakos Pierrakakis as the new Finance Minister. This strategic approach comes after public outrage and large protests prompted by the terrible 2023 train catastrophe, which increased pressure on the authorities to take urgent action. The reshuffle intends to boost government support and maintain economic development while addressing critical public issues.