European Commission Expects 2.7% Growth in Greek Economy in 2017



The Greek economy grew 0.3 percent in 2016 and is expected to grow by 2.7 percent this year and by 3.1 percent in 2018, the European Commission said in its winter forecasts.

The EU’s executive, in a report released on Monday, said that the Greek economy’s picture was improved compared with the Commission’s autumn estimates which saw a 0.3 percent contraction of the Greek GDP in 2016.

The country’s fiscal deficit is expected to fall to -1.1 percent of GDP in 2016, from a -2.5 percent autumn estimate, to remain stable in 2017 and to turn into a 0.7 percent surplus in 2018.

The Greek public debt is expected to reach 179.7 percent of GDP in 2016 (down from a previous estimate of 181.6 percent in autumn), falling to 177.2 percent in 2017 and to 170.6 percent in 2018.

The unemployment rate is projected to fall from 23.4 percent of the workforce in 2016 to 22 percent in 2017 and to 20.3 percent in 2018.

The inflation rate is expected to be zero in 2016, rising to 1.3 percent in 2017 and to 1.0 percent in 2018.

Finally, investments are projected to rise significantly by 12 percent in 2017 and by 14.2 percent in 2018, from 4.0 percent in 2016.

Source: ANA-MPA