Tuesday, April 26, 2011

Greece's Budget Deficit Higher Than Expected

Wall Street Journal
April 26, 2011

Greece's budget deficit in 2010 was 10.5% of gross domestic product, significantly higher than forecast by either the Greek government or the European Union authorities, Eurostat, the EU's official statistics agency, said Tuesday.

The new deficit figure will add further pressure on Greece to cut its deficit this year to meet targets set under the rescue program overseen by the EU and the International Monetary Fund. The European Commission, the EU's executive arm, said in February that it expected Greece's deficit to be 9.6% of GDP in 2010 and 7.6% by the end of this year.

Eurostat also raised its estimate for Greece's 2008 budget deficit to 9.8% of GDP from 9.4%. Greece's total government debt was 142.8% of GDP at the end of 2010, the highest level in the EU, Eurostat said.


See also AP Report

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