Greece Outperforms Fiscal Targets in 2025 with Primary Surplus Above Expectations

Greece Outperforms Fiscal Targets in 2025 with Primary Surplus Above Expectations

Robust tax revenues and growth fuel stronger budget results as debt ratio falls, boosting confidence in 2026.

In a notable fiscal achievement for Greece, the government’s 2025 budget performance significantly exceeded official targets, with the primary budget surplus expected near 4.5% of GDP, well above the revised goal of 3.7%. This translates to approximately €11.5 billion, roughly on par with the exceptionally strong surplus seen in 2024.

Strong Revenues and Fiscal Discipline Drive Outperformance

The upswing in fiscal performance was largely driven by higher-than-expected tax revenues and continued efforts to contain expenditure, including measures to combat tax evasion. These factors combined to deliver more resilient budget figures than projected, underscoring the underlying strength of Greece’s public finances entering 2026.

This fiscal outperformance is not limited to short-term gains; data for the first ten months of 2025 also showed a primary surplus of over €10 billion, further highlighting sustained momentum throughout the year.

Economic Growth and Outlook

Greece’s economic expansion remained solid in 2025, with growth estimated above 2%, supporting broad-based revenue gains. Inflation also eased gradually, which helped stabilize economic conditions and maintain consumer and business confidence.

Public Debt Trajectory Improves

On the debt front, the public debt-to-GDP ratio continued its downward trend, with estimates suggesting a decline to the mid-140s percent of GDP—a notable adjustment from earlier peaks and a positive signal for medium-term debt sustainability.

Policy and Market Implications

This fiscal outperformance enhances Greece’s credibility with international investors and credit rating agencies, potentially influencing ongoing discussions about future sovereign ratings and borrowing costs. Continued surpluses and declining debt levels could support greater fiscal flexibility and enable strategic investments or targeted tax reliefs in 2026.

Overall, Greece’s 2025 fiscal results reflect a blend of solid economic growth, disciplined revenue mobilization, and prudent expenditure management—setting a stronger foundation for public finances heading into the new year.

Source: pagenews.gr