IMF Estimates Lower Growth Rate for Greece

The IMF new assessment for growth in Greece is at 2 percent of gross domestic product, lower than the 2.6 percent forecast six months ago, according to the Fund’s latest report.

According to the Athens-Macedonian News Agency, the International Monetary Fund Economic Counsellor and Director of Research Maurice Obstfeld presented the report that shows that in 2017 Greece showed a growth of 1.4 percent.

At the same time, unemployment declined at a faster rate than first estimated. According to the report, unemployment showed a faster de-escalation than it had been predicted last October. In 2017, unemployment dropped by 0.8 percent more than initial projections, at 21.5 percent and not 22.3 percent as estimated.

For the current year, the Fund places the unemployment rate at 19.8 percent against the estimated 20.7 percent. Finally, for 2019, the IMF predicts an even greater drop in unemployment, estimated at 18 percent.

Regarding growth, the Fund revised the estimated 2.6 percent down to 2 percent for 2018. For 2019, the Fund forecasts a decline in growth as compared to 2018, as it finds it forecasts a 1.8 percent growth.

In the report it is estimated that deflationary pressures will continue in the Greek economy. Specifically, the IMF predicted a 1.2 percent increase in inflation of 1.2%, while in the new report it is estimated at 1.1 percent. As for 2019, the IMF predicts inflation increase of 1.1 percent.

Also, according to the report, the Fund stresses the need for a rapid decrease of the number of red loans, a move that is considered a prerequisite for overcoming the economic crisis.