The Greek Gross Domestic Product is estimated to reach 192.749 billion euros in 2019, an increase of 2.5 pct from 2018, according to the state draft budget, with private consumption rising by 1.1 pct (after an 1.0 pct increase this year), while public consumption is expected to rise by 0.6 pct (0.2 pct in 2018).
Private investments are projected to rise by 11.9 pct in 2019, after a 0.8 pct increase this year, exports to grow by 5.8 pct (7.5 pct) and imports to grow by 5.2 pct (3.4 pct in 2018). Unemployment is expected to fall to 18.2 pct in 2019 from 19.6 pct this year and the inflation rate to rise to 1.2 pct from 0.8 pct.
The draft budget noted, however, that risk factors were gradually transferred from the domestic to the external environment amid trade tensions, geopolitical tensions and political instability in the eurozone.
The country’s public debt is projected to reach 323.5 billion euros in 2019, or 167.8 pct of GDP, down 12.6 percentage points from 2018 (335 billion or 180.4 pct of GDP), reflecting the creation of a cash buffer which will be partially used in 2019. Privatization revenue were projected to reach 1.531 billion euros.
State budget net revenues, on a fiscal basis after deduction of tax returns, are expected to reach 53.806 billion euros in 2019, up 0.7 pct from targets, reflecting a 2.5 pct increase in taxes on goods and services, a 565 million euros rise in VAT and a 51 million euros decline in consumption taxes. Property taxes are projected to ease by 215 million euros, income taxes are projected to rise by 1.8 pct and revenue from social contributions is expected to rise by 8 million euros. Tax returns are expected to reach 4.818 billion euros in 2019, up 633 million from budget targets. Public Investment Programme revenues are projected to reach 3.740 billion euros, up 150 million from targets.
State budget spending is expected to reach 56.956 billion euros in 2019, down 573 million from targets, with primary spending at 49.956 billion euros (down 623 from budget targets). Payroll spending will reach 13.016 billion euros, up 25 million from targets, while Public Investment Programme spending will reach 6.750 billion euros in 2019.