Greek Budget Foresees Strong Growth in 2015

Greece’s government on Friday submitted its 2015 budget to Parliament, sticking with high-growth and low-deficit predictions that rescue lenders say are too rosy.

The budget leaves forecasts made in a draft last month unchanged, estimating the economy will grow by 2.9 percent in 2015, after the country emerged from a six-year recession this year.

The budget projects Greece’s primary surplus — state income without taking into account interest payments on outstanding debt — will be 3 percent of gross domestic product. It sees the deficit narrowing to 0.2 percent of GDP next year, from 1.3 percent this year and 1.6 percent in 2013.

Deputy Finance Minister Christos Staikouras said the government stuck to its deficit projection despite disagreement from rescue lenders, but gave no further details.

“They have a different estimation, and they see a budget shortfall, which we do not,” he said.

The budget also comes amid a disagreement between Greece and international creditors on remaining reforms before part of its bailout program ends this year. The dispute has delayed the return to Athens of bailout inspectors.

In Brussels, European Commission spokesman Margaritis Schinas said negotiations were ongoing.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza