Greece’s state budget posted a 5.4-billion-euro primary surplus over the Jan-Nov 2023 period, on cash basis, according to an announcement by the Bank of Greece (BoG) on Wednesday.

During the same period the central government cash balance posted a deficit of 468 million euros, compared to a deficit of 6.808 billion euros in the corresponding period of 2022.

Additionally, ordinary budget revenues totaled 56.59 billion euros, compared to 49.83 billion euros in the corresponding period of 2022. Ordinary budget expenditures reached 53.47 billion euros, essentially unchanged from 53.49 billion euros in Jan-Nov 2022 period.

BoG Interim Report on Monetary Policy

In a related development, the BoG on Wednesday also released its Interim Report on Monetary Policy for 2024.

According to the Interim Report, tabled by BoG Gov. Yannis Stournaras in parliament, Greek economic growth is forecast at 2.4% in 2023, rising marginally to 2.5% in 2024 and 2025 and then easing to2.3% in 2026.

Although the Greek economy is expected to grow faster than the euro area average, Stournaras nevertheless warned of a further slowdown in growth.

The forecast is also revised, downward, from June 2023’s forecast (3.0%), reflecting the downward revision of eurozone growth and a continuing high interest rate environment.

The BoG reports maintains that the Greek economy will continue to be fueled in coming years by private consumption, investment and exports, while net trade will have a marginally negative contribution.

HICP inflation is forecast to continue a downward course, totaling 4.1% in 2023, down from 9.3% in 2022. This development is largely attributed to much reduced energy prices.