Finally, public debt as a percentage of GDP was 2 percentage points higher in 2023 due to the inclusion of deferred interest for EFSF loans (referring to the second memorandum loan). According to Eurostat data, Greek debt continued its downward trend, despite this fact, both last year and in previous years, from 2020 onwards.
According to Eurostat data, Greek debt appears to have increased as:
- Deferred interest was incorporated into the debt index, leading to an increase in percentage of GDP of 5.5 percentage points in the years 2020, 2021 and 2023 and 5.4 points in 2022.
- The upward revision of GDP for 2023 by the Hellenic Statistical Authority (ELSTAT) contributed to limiting the impact of the aforementioned debt in relation to GDP at 3.5%.
As a result of the above-mentioned factors, public debt was set at 163.9% of GDP in 2023, compared to 161.9% of GDP based on April 2024 data. In absolute numbers, public debt increased to 369.09 billion. euros last year with a GDP of 225.1 billion. euros against a debt of 356.69 billion. euros, in the first estimate in April, with GDP at 220.3 billion. euro.
This statistical presentation does not represent any real risk to investors due to the GDP revision. It turns out that public debt continues to decrease, while in 2024 it will continue to decrease as a percentage of GDP to reach almost 153.7%. The decisive factor is the imminent early repayment of three more installments of the first memorandum loan worth 7.94 billion. euros, almost entirely absorbing the effect of the retroactive inclusion of EFSF interest in the debt/GDP ratio.
Continuation of the downward trend in 2024
Although it remains the highest in the EU, Greece’s public debt continued to decline during the second quarter of the year. Based on Eurostat data, in relation to the corresponding period of 2023, Greece achieved the second largest debt reduction (by 8.9%) after Cyprus (-10%), while the reduction recorded in relation to the first quarter of this year recorded the third largest decrease (1.8%) in the EU. after Cyprus (2.1%) and Croatia (2%).
Although Greece continues to be the country with the highest level of debt as a percentage of GDP, the interesting fact is that Italy is in second place and in fact increasingly close to our country.
In the 2nd quarter of the year, Greek debt amounted to 369.44 billion. euros with the highest percentage relating to loans (corresponding to 118.3% of GDP), bonds (42.2% of GDP), while a small percentage of 3.1% concerns currencies and deposits.