Authors: G. Hardouvelis, P. Monokroussos
Publication: Focus Greece, Eurobank Research, November 15, 2010
Introduction:
Eurostat releases 2nd notification on provisional EU27 deficit and debt figures for the period 2006-2009; revisions to Greece’s past fiscal data broadly in line with market expectations
Eurostat released earlier today a second notification on provisional EU27 deficit and debt figures for the period 2006-2009. The report showed a rise in the euro area government deficit to 6.3%-of-GDP last year, from 2.0%-of-GDP in 2008, with the corresponding debt to GDP ratio reaching 79.2% in 2009 compared to 69.8%-of-GDP in the prior year. At a EU27-wide level, the fiscal deficit rose to 6.8%-of-GDP in 2009, from 2.3%-of-GDP in 2008, while the corresponding government debt-to-GDP ratios stood at 74% and 61.8% at the end of 2009 and 2008, respectively.
For Greece, the announced revisions were broadly in line with market expectations, following a number of recent press reports on their likely direction and expected size. Specifically, the 2009 general government budget deficit was re-estimated at 15.4%-of-GDP, compared to a deficit of 13.8%-of-GDP presented in the 2011 draft budget (released in mid-October). Moreover, the 2009 government debt to GDP ratio was revised to 126.8%, from a 115.4% figure recorded in the draft budget…
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