OECD Says Greek Economy to Grow by 2.2 Percent in 2019



The Greek flag in front of the Acropolis. Photo by AMNA

Economic growth in Greece will exceed two percent in 2019 and 2020, the Organisation for Economic Cooperation and Development (OECD) stated in its Economic Outlook report, released on Wednesday.

The report notes that the GDP in Greece is projected to edge up to 2.2 percent in 2019, before moderating slightly in 2020. The large contribution that exports have made as a percentage of growth will decline, but it is projected that individual households will fare better economically than they have in recent years. Investment in the economy is projected to rise steadily, and continued implementation of the government’s reform program will support overall economic recovery. Unemployment, while still high, will continue to fall.

The Greek state budget is projected to reach the authorities’ medium-term surplus targets as the country’s fiscal policy is becoming healthier.

The debt relief and policy measures to which Greece and its European partners agreed will cap the country’s gross public financing needs, reintegrate Greece into the “European Semester” framework and establish regular policy monitoring. The Paris-based organisation also noted that there now are cash reserves which will serve as a buffer to provide security against external volatility, adding that the recovery is projected to continue.

With information from A.M.N.A.