IMF Sees Rapid Decline of Greek Debt to 130% of GDP by 2030

A decennary ago, anyone claiming that Greece could trim its indebtedness by 80 percent points of GDP would apt person been met with skepticism. Yet, according to the International Monetary Fund (IMF), this script is present considered achievable.

Greek public debt, which peaked at 210% of GDP during the pandemic, is expected to autumn to 130% of GDP by the extremity of the decade, supported by dependable but measured fiscal policy.

The Recipe for Debt Reduction

The cardinal to this occurrence is not only economic growth and fiscal prudence, but besides the smart absorption by ODDIHX:

• Greece has phased retired costly bailout-era loans through prepayments erstwhile currency reserves allowed.
• Remarkably, this indebtedness simplification is being achieved without requiring excessively precocious superior surpluses, dissimilar past fiscal practices.

Analysts picture this arsenic a “strategic indebtedness absorption attack that circumvents the accepted fiscal straitjacket.”

Primary Surpluses: Moderate but Sustainable

According to IMF projections, Greece’s primary surpluses are expected to germinate arsenic follows:

• 2025: 3.2% of GDP (below the government’s 3.6% estimate)
• 2026: 2.3% of GDP (versus 2.8% successful Athens’ forecast)
• 2027-2028: 1.8% of GDP
• 2029: 1.9% of GDP
• 2030: 2% of GDP

Despite the gradual decline, surpluses stay positive, ensuring the country stays connected a sustainable indebtedness trajectory and reduces aboriginal financing needs.

The Role of Prudent Management

Analysts item that ODDIHX’s strategy—repaying costly loans, utilizing currency reserves, and gradually reducing debt—represents a modern fiscal absorption model that could service arsenic a blueprint for different high-debt EU countries.

Greece is nary longer babelike on excessively precocious surpluses to trim debt, enhancing fiscal flexibility and minimizing the hazard of societal strain from austerity measures.

The IMF forecasts a remarkable diminution successful Greek debt over the coming years, emphasizing that strategic indebtedness absorption combined with humble but affirmative surpluses could bring indebtedness down to 130% of GDP by 2030—a script erstwhile thought astir impossible.

Greece demonstrates that fiscal prudence and astute indebtedness strategy can execute results without dense societal costs, paving the mode for sustainable maturation and fiscal stability.