In your 'simple mathematics' you should have known that interest payment on government debt counts as Value Added of government sector. Thus, with the increase of interest repayments the total GDP of the country grows by the same proportion. If the interest on government debt equals 4% of GDP, the total GDP automatically is shown 4% higher than under the previous method of GDP computation.
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The Simple Math Behind Greece’s Complicated Situation
In your 'simple mathematics' you should have known that interest payment on government debt counts as Value Added of government sector. Thus, with the increase of interest repayments the total GDP of the country grows by the same proportion. If the interest on government debt equals 4% of GDP, the total GDP automatically is shown 4% higher than under the previous method of GDP computation.