Pandemic throws Greece’s budget off-target, hurts recovery

Greece’s budget deficit has widened due to the effects of the coronavirus pandemic, which has slammed the key tourism sector and is pushing the country into recession

The Finance Ministry said Thursday that the primary deficit figure for the state budget, the balance before debt servicing costs, stood at 4.84 billion euros ($5.41 billion) in the first five months of the year. In the first four months, it was 1.52 billion ($1.7 billion).

Greece has delivered primary budget surpluses for the past five years as part of its commitments to European Union bailout lenders, but creditors have agreed to relax those conditions this year due to the crisis.

State budget calculations do not include budgets for local government and social security.