Greece: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Greece

November 15, 2019

Preview Citation

Format: Chicago

Greece: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Greece, (USA: International Monetary Fund, 2019) accessed November 21, 2024

Summary

This 2019 Article IV Consultation with Greece discusses that public debt is projected to trend down over the next decade, though long-term sustainability is not assured under realistic macro-fiscal assumptions. Still-weak bank balance sheets act as a drag on growth prospects and pose significant fiscal and financial stability risks. These and other factors leave Greece vulnerable to a range of external and domestic shocks. Greece’s prospects for improved living standards and economic convergence within the Euro Area (EA) depend on implementing a critical mass of inter-related fiscal, financial, and structural policy reforms. In order to achieve better growth and social outcomes, the fiscal policy mix should be improved, with more emphasis on investment and targeted social spending and lower direct taxes, backed by reforms in revenue administration and public financial management. Greece’s success within the currency union critically hinges on narrowing its structural competitiveness gap. Policies should focus on productivity enhancement through improved labor market flexibility, more effective labor activation policies, stronger institutions, and business deregulation.

Subject: Banking, Financial institutions, Fiscal policy, Fiscal stance, Labor, Loans, Revenue administration, Tax administration core functions

Keywords: Authorities plan, Authority, Bank balance balance sheet, Cornerstone program-era labor market reform, CR, Fiscal stance, Global, Government program, Growth objective, ISCR, Liability positions vis-à-vis nonresident, Loans, Money market rate, Reform, Reform implementation, Tax administration core functions

Publication Details

Pages:

83
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2019/340
Stock No:

1GRCEA2019002
ISBN:

9781513520209
ISSN:

1934-7685

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