The two main causes of the consistent and notable decline in public debt as a proportion of GDP have been the Greek economy's recovery and the country's return to primary surpluses following the Covid-19 pandemic (GDP).

Thanks to this progress, Greece regained its investment grade status in 2023 and continues to enjoy upgrades from credit rating agencies. 

The latest data for the first quarter of 2024 show that the general government debt decreased to 159.8% of GDP from 169.4% a year earlier and from the 207% peak reached due to the pandemic and economic support measures at the end of 2020. 

Greece still has the most debt in the eurozone, but it is at its lowest point since 2012, when it was reduced to 157.2% of GDP as a result of the Greek government bonds' 53.5% haircut as part of the PSI (private sector involvement).

Furthermore, all rating agencies indicate a clear downward trajectory, with Scope Ratings predicting that by 2026 it will be lower than Italian debt as a percentage of GDP. 

According to recent projections made by the Bank of Greece's governor, Yannis Stournaras, Greek debt will drop to 60% of GDP in about 40 years.

This is assuming that primary surpluses close to 2% of GDP are maintained and economic reforms continue, ensuring a favorable difference between the debt repayment interest rate and the economic growth rate.