The positive performance of public revenues enhances the possibility that the primary surplus will exceed 2.5% of GDP and even reach 2.8% this year.
Revenue from combating tax evasion, which, based on the estimates of the economic staff, will amount to 1.8 billion euros in 2024, is very likely to exceed 1.9 billion euros or even exceed 2 billion euros.
According to the estimates of the Parliamentary Budget Office, revenue from combating tax evasion will even reach 2.5 billion euros in 2025.
In this case, the government should emphasize the reduction of direct taxes as this provides an incentive to boost employment. The next step could be to reduce indirect taxes since tax evasion has decreased and competition between businesses has increased.
Growth and inflation estimates
The macroeconomic scenario predicts GDP growth of 2.2% for 2024 and 2.3% for 2025, while inflation (harmonized consumer price index) is expected to stand at 2.8% in 2024 and 2.1% in 2025.
“The estimate for the growth rate of the Greek economy is between 2.2% and 2.5% in 2025.” Positive prospects and risks may affect the growth rate of the economy, having also an impact on the fiscal result for 2025.
