IMF, “Greece : Preliminary Debt Sustainability Analysis-Updated Estimates and Further Considerations”, Country Report No. 16/130, 23 May
Greece continues to face a daunting fiscal consolidation challenge. After seven years of recession and a structural adjustment of 16 percent of GDP, Greece has only managed to achieve a small primary surplus in 2015, and this due to sizeable one-off factors. This is still far away from its ambitious medium-term primary surplus target of 3½ percent of GDP. Reaching this target still requires measures of some 4½ percent of GDP. Low-hanging fruit have been exhausted, and the scope for new significant measures is limited.
Relevant Posts
- De Grauwe, Paul, (2016), “The ECB grants debt relief to all Eurozone nations except Greece”, Voxeu, 13 May
- Potrafke,Niklas, Reischmann, Markus (2016), “How to Handle the Crisis in Greece? Empirical Evidence Based on a Survey of Economics Experts”, CESifo Working Paper No. 5860, April 2016