Greece has once again defied economic expectations, achieving a central government primary surplus of 3.5% of its Gross Domestic Product (GDP) in 2024, significantly surpassing the government’s target of 2.5%. Outgoing Finance Minister Kostis Hatzidakis revealed the impressive figures on Saturday, highlighting the nation’s fiscal discipline and financial turnaround.
Greece’s Fiscal Resilience and Surging Surplus
For a country that nearly faced economic collapse in the past decade, Greece’s financial recovery continues to gain momentum. The primary surplus—excluding debt-servicing costs—plays a critical role in ensuring the sustainability of the nation’s substantial debt. Hatzidakis emphasized that when final figures are released next month, the primary surplus will stand at approximately 3.5% of GDP, with a fiscal surplus of 0.2%.
This fiscal performance reinforces Greece’s commitment to maintaining economic stability and meeting stringent financial targets, a crucial aspect of the country’s post-bailout commitments to international lenders.
Political Shake-Up Amidst Economic Growth
While Greece celebrates this economic milestone, the government is also undergoing significant political changes. On Friday, Prime Minister Kyriakos Mitsotakis announced a cabinet reshuffle, appointing Kyriakos Pierrakakis as the new Finance Minister. This strategic move follows public unrest and mass protests sparked by the tragic 2023 train crash, which had put pressure on the administration to take decisive action.
The reshuffle aims to strengthen government support and sustain economic progress while addressing pressing public concerns. With a new finance leadership in place, Greece’s economic policy direction will be closely watched in the coming months.
A Promising Path Forward
Greece’s ability to surpass fiscal targets signals a promising trajectory for the nation’s economy. Achieving and maintaining such a surplus will be instrumental in reducing debt burdens, strengthening investor confidence, and bolstering the country’s long-term financial health. As the final numbers emerge, all eyes will be on Greece’s next steps in sustaining this impressive fiscal performance.
