The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Can Greece keep up the good work?

Greece’s economy grew faster than expected in 2005. But its government faces a major challenge in 2006: to maintain its strong growth rate while complying with the EU directive to cut its budget deficit by the end of the year. By Dimitris Kontogiannis.

Agency aims for more innovation

Greece seems to be on the brink of achieving something of an economic miracle in the eurozone, by both beating its growth targets and reducing its budget deficit. The news in 2005 was positive, with the Greek economy estimated to have grown by about 3.7%, beating market consensus forecasts that expected GDP growth of between 2.8% and 3.3%. And the government achieved this in style, since it also managed to reduce its budget deficit to about 4.3% of GDP from 6.6% in 2004.

This means there’ll be more of the same in 2006.

“The government will stick to the policy of smooth economic adjustment that combines fiscal consolidation with strong GDP growth rates,” says Plutarch Sakellaris, chairman of the council of economic advisors at the Greek finance ministry. “We feel confident that we can bring the budget deficit below 3% of GDP and achieve economic growth of 3.8% in 2006.”

In its updated programme for 2005–08, the general government budget deficit is predicted to fall to 2.6% of GDP in 2006, underpinned by a GDP growth rate of 3.8%. But the European Commission and some economists doubt whether Greece’s excessive deficit can be eliminated before 2008.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree