PARIS (MNI) – The draft budget for 2013, presented by the Greek
government to parliament on Wednesday, projects the country’s public
debt at a staggering 189.1% of GDP next year, up from the previous
official target of 179.3%.
The document forecasts the general government deficit at 5.2% of
GDP next year, a full percentage point above the previous estimate. And
the economy is expected at the same time to contract more sharply than
expected: Greek GDP is now seen shrinking by 4.5% in 2013, compared
with the government’s previous projection of 3.8%.
According to the budget, Athens will only be able to achieve a
primary surplus of 0.4% next year, revised downwards from the official
target of 1.1%. Still, this is the first time since 2002 that the Greek
budget foresees a primary surplus.
Unemployment is expected to rise to 22.8% in 2013.
The budget document notes that in the six years through 2013 – the
sixth year of recession – Greece’s GDP will have shrunk by a total of
24.5%.
The Greek parliament is currently voting on the privatization plan
tabled by the Finance Ministry. The vote on new austerity measures
totaling E13.5 billion will be brought up for a separate vote next week.
[TOPICS: M$Y$$$,M$X$$$,MGX$$$,M$$CR$,MT$$$$]
