“Wood Sees Greek Debt Near 100% of GDP by 2030 – Fiscal Discipline and Tax Reforms to Shape the Next Decade”

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Primary surpluses, fiscal discipline, and the 2026–2027 measures bundle enactment Greece’s economical trajectory

Wood expresses a highly affirmative outlook on Greece’s indebtedness trajectory, describing the government’s estimates as conservative, and expects indebtedness to approach 100% of GDP by 2030 thanks to effective fiscal management and strict fiscal discipline. This trajectory further strengthens prospects for upgrades to Greece’s recognition rating.

Despite a slowdown successful economical enactment successful the archetypal fractional of 2025, Greece remains connected a beardown maturation path: 2% this twelvemonth and 2.5% successful 2026. Investment momentum is supported by the absorption of betterment funds and improvements successful productive capacity.

New Fiscal Relaxation Package

The steadfast notes that the authorities plans a mean caller bundle for 2026, aiming to support households, young people, and pensioners while updating the wage standard for the equipped forces, police, fire, and seashore guard. The bundle is valued at:

€1.76 cardinal (0.7% of GDP) for 2026
€2.5 cardinal (0.9% of GDP) for 2027

It is expected to payment around 4 cardinal taxpayers, including income taxation alleviation for those nether 25, fixed the debased information of this demographic successful the labour unit (22.7% successful 2024 vs. EU mean of 40.5%).

Tax Revenue and Fiscal Outperformance

Measures to amended taxation compliance are yielding results:

Corporate income tax: +1 percent constituent to 3% of GDP
Personal income tax: +0.6 points to 6.4%
VAT: +0.7 points to 4.2%

Tourism revenues stay at 9.2% of GDP, beneath pre-pandemic levels (9.9%). Wood notes that resource allocation is not optimal, constraining household and concern incomes and contributing to underlying ostentation pressures.

Debt Reduction and Cash Reserves

Greek indebtedness shows a strong downward trend:

From 154.1% of GDP successful 2024
To 144.2% successful 2025, 134.5% successful 2026, and 101.3% successful 2030, compared to the government’s projection of 120% of GDP.

Cash reserves remain high: €42.6 cardinal (17.5% of GDP), versus €15.3 cardinal (6.2% of GDP) in gross financing needs, providing fiscal information and the anticipation of early repayment of GLF loans.

Labor Market and Wage Developments

The minimum wage roseate by 6% successful 2025 (from €830 to €880) with a planned further summation to €950 successful 2027, boosting purchasing powerfulness without overly affecting productivity.

Wood’s Conclusion

Wood expects Greece to maintain primary surpluses supra 2% of GDP, with a balanced fiscal way and gradual indebtedness reduction, supporting credit standing upgrades and creating country for careful fiscal relaxation and targeted taxation reforms.

Source: pagenews.gr

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