ATHENS, Oct. 5 (Xinhua) -- Greece's government on Monday submitted its draft 2027 budget to parliament, projecting gross domestic product (GDP) growth of 2.3 percent, continued declines in unemployment and public debt, and a primary budget surplus of 3.3 percent of GDP.
The draft budget, submitted to parliament's Standing Committee on Economic Affairs, forecasts growth well above the eurozone average of 1.2 percent projected for 2027.
Investment and private consumption are expected to be the main drivers of growth in 2027, rising by 7.9 percent and 1.5 percent, respectively, according to the National Economy and Finance Ministry.
The draft budget projects public debt to fall from 146.1 percent of GDP in 2025 to 136.8 percent in 2026 and 128.8 percent in 2027, while the unemployment rate is expected to decline to 7.9 percent in 2027.
Inflation is expected to ease to 2.4 percent in 2027 from 3.6 percent in 2026. The primary budget surplus is forecast to fall from 3.6 percent of GDP in 2026 to 3.3 percent in 2027.
The Hellenic Fiscal Council, an independent public institution that monitors fiscal policy, has ratified the macroeconomic forecasts underpinning the draft budget and said the government's fiscal targets were achievable and in line with the relevant fiscal rules, Greek national news agency AMNA reported.
The Fiscal Council, however, was more cautious about growth, forecasting expansion of 1.9 percent in 2026 and 2 percent in 2027, compared with the ministry's forecasts of 2 percent and 2.3 percent, respectively.
The council warned of risks from geopolitical tensions, higher interest rates and international energy prices, noting that energy prices in Greece rose by an average of 10.6 percent in the first eight months of 2026. It also said the public debt ratio, despite its projected decline, would remain the highest in the European Union, requiring continued fiscal vigilance.
The draft budget will be debated in parliament in the coming weeks. The government plans to submit the final 2027 budget on Nov. 20, Deputy National Economy and Finance Minister Thanos Petralias said. ■