Deficit reduction in the United States

Türkiye's economic growth will ease to 3.5 percent in 2024 and 2.6 percent in 2025 as necessary macroeconomic stabilization policies will slow domestic demand, the Organization for Economic Cooperation and Development (OECD) said in its Economic Outlook report published on Dec. 4.

Nearly balanced budget—the first in decades—will be submitted at 10:00 in Parliament’s Plenary Session by the Minister of National Economy and Finance, Kostis Hatzidakis.

According to information from newmoney.gr, compared to the draft budget submitted in early October, the final plan for 2025 will project higher GDP growth of 2.2%-2.3%, but also higher debt and inflation.

Greece's primary surplus is projected to increase to 2.1% of GDP in 2024, up from 1.9% in 2023, and is expected to remain at that level through 2029, according to the International Monetary Fund's Fiscal Monitor report on global fiscal developments.

In a recent Q&A, the Ministry of Finance outlined key aspects of the Greek economy’s future based on the Mid-term Fiscal Plan for 2025-2028. This plan details structural changes and projections for the economy over the next four years. Here are the highlights:

1. What are the European fiscal rules and how do they differ from the Stability Pact?

Tax revenues and the primary result of the budget in January and February exceeded the target, but this is largely counted in the 2023 budget, per the Finance Ministry. Therefore, for 2024, there is currently no significant fiscal space for benefits.

The central government budget is likely to produce a less-than-expected deficit in 2023, Vice President Cevdet Yılmaz has said.

The budget performance will surprise on the upside, said Yılmaz, speaking at the parliament during the discussions on the 2024 budget.

Recent findings from Eurostat, the European statistics agency, have unveiled disparities in social protection and healthcare spending among EU member states. In 2022, the average expenditure across the EU nations, measured as a percentage of GDP, was recorded at 8.1%. However, this marked a decline of 0.4 percentage points from the previous year's figures.

The International Monetary Fund sees Greece returning to fiscal consolidation, with systematic achievement of primary surpluses and debt deleveraging in the coming years, per its spring fiscal report, published on Wednesday.

"There is no risk of bankruptcy of the state, nor of the intervention of the International Monetary Fund and the need to take out new debt." This was stated on the National Television by the Acting Minister of Finance Rositsa Velkova. Her comment was on the occasion of the two scenarios of the long-term budget forecast leaked to the media yesterday.