Budget 2003: Greek Deficit Forecast Revised Upwards
Budget 2003: Greek Deficit Forecast Revised Upwards
24/9/2003 16:53
The government has again revised its 2003 budget deficit figure upwards, to over 1% of GDP, following its previous forecast revision of 11 September when it increased the figure from 0.9% to 1%. Despite an upbeat summary from the central bank last week (see Greece: 18 September 2003: Central Bank Revises Growth Forecast as Greek Economy Benefits from External Funds) and assurances from Economy and Finance Minister Nikos Christodoulakis that the deficit could be contained, high one-off costs related to next year's Olympic Games (before the effects of inflows are felt) and planned increases to public spending in the run-up to elections could see this figure increase.

Significance: The deficit forecast for 2004 was also recently increased from 0.4% of GDP to 1%, and Greece has the second-highest level of public debt in the eurozone, running at over 100% of GDP, which it needs to reduce.

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