ATHENS, Greece — Greece is beating its budget targets by a wide margin so far this year, finance ministry figures showed Monday, a sign the country’s painful cost cuts and tax increases, combined with international bailout funds, are paying off.
The economy, however, remains deep in recession and unemployment at a record high.
Deputy Finance Minister Christos Staikouras said preliminary figures show the state budget had a primary surplus — which excludes interest payments on debt — of $3.5 billion for the January-July period
That is a far better result than its target of a $4.2 billion deficit, and marks the first time the government has logged a significant primary surplus.
The actual deficit, including interest payments, came in at $2.5 billion, also better than the targeted $10 billion deficit, the finance ministry’s figures showed. In the same period last year, the country posted a $17.6 billion deficit.
The deficit now stands at 1 percent of gross domestic product, from 6.8 percent in the same period last year, Staikouras said.
Greece has depended on international rescue loans since 2010. In return, it has pledged to overhaul its economy and has imposed waves of austerity measures. It has reduced spending across the board, including cuts to state salaries and pensions, and increased taxes.
