From 210% to 137% of GDP: How Greek debt is decreasing year by year

The clip when Greece’s precocious nationalist indebtedness dominated the economical quality astir the world is over.

However, it could go the archetypal topic of treatment this clip for the awesome downward trend it has recorded successful caller years.

The Greek indebtedness arsenic a percent of GDP, based connected the draught 2026 budget, will autumn to 137.6% of GDP adjacent year, from humanities highs of adjacent to 210% successful 2020 and slightly beneath the levels of 147.8% recorded successful 2010, when Greece received the archetypal rescue package.

At the aforesaid time, different European countries are seeing their nationalist indebtedness travel an upward trend. The latest lawsuit is France, which has been successful a governmental situation for some time. The French economy, the 2nd largest successful the eurozone, seems weak to incorporate fiscal deficits, expanding the hazard of a higher nationalist debt.

Greece, connected the different hand, whitethorn person adjacent much indebtedness than France and Italy arsenic a percent of GDP. However, the markets are present lending to our state astatine a little involvement complaint than France, which is reflected successful the yield of the 10-year bond, which has fallen to 3.4%, when France is conscionable shy of 3.6%.

One origin contributing to the simplification of nationalist indebtedness is the summation successful GDP, frankincense affecting its percentage. Based connected the 2026 fund projections, GDP is estimated to summation further and scope 261 cardinal euros. In addition, wide authorities indebtedness is projected to scope 359 cardinal euros oregon 137.6% of GDP, compared to 362.8 cardinal euros oregon 145.4% of GDP successful 2025, signaling a alteration of 7.8 percent points. High currency reserves and superior surpluses screen involvement expenses, which means that we bash not request to get to screen indebtedness work costs. Debt deleveraging is besides supported by constricted caller authorities borrowing and continued aboriginal repayments of support mechanics loans, which trim hazard and heighten indebtedness sustainability.

What will the state gain? Given existent marketplace conditions, the repayment is expected to bring astir an contiguous simplification successful the wide authorities indebtedness by astir 2.2% arsenic a percent of GDP, arsenic well arsenic savings done a simplification successful yearly involvement expenses by astir 150 cardinal euros, connected mean implicit a play of 12 years.

In addition, it reduces the involvement complaint hazard and the refinancing hazard of the indebtedness and contributes to the further betterment of the creditworthiness of the Greek system by planetary standing agencies. At the aforesaid time, the hazard of accrued indebtedness servicing costs from 2032 onwards is mitigated.