Moreover, in 2016 Greece’s fiscal balance and external position are both further improving as the general government primary budget should exceed the target set for the year (0.63% of GDP according to the draft budget, against a target of 0.5%), while the current account surplus is expected to stand at 0.9% of GDP (Figure 5).
The materialisation of short-term debt relief measures, already agreed at the May 2016 Eurogroup meeting, is of great significance for boosting investors’ confidence. This is because it signals that the debt servicing burden will be moderate in the short term, thus releasing available resources needed for economic growth and alleviating the consequences of a strict fiscal adjustment.