Greek economy predicted to grow in 2017

According to the latest data in the IMF’s World Economic Outlook report, the Greek economy is set to grow by 2.2% in 2017 and 2.7% in 2018.

The report was presented on Tuesday by the Fund’s chief economist Maurice Obstfeld ahead of this week’s IMF meeting in Washington between finance ministers and central bankers.

The report also forecast a decrease in unemployment, from 23.8% in 2016 to 21.9% in 2017 and 21% in 2018. The last time unemployment in Greece stood at an average of 21% was in 2011.

Concerning Greece’s external deficit, the IMF says the current account in 2016 showed a deficit of 0.6 percent of GDP, which will be limited to 0.3 percent of GDP this year and will achieve a balance in 2018, so that in 2022 it will turn into a surplus of 0.1 percent of GDP. This performance reflects the Fund’s estimates for an improved competitiveness of the Greek economy, primarily as a result of the ongoing internal devaluation.

On inflation, the report estimates that a 1.1 % deflation in 2015 turned to a zero rate in 2016, while in 2017 the country will return to a 1.3 % inflation rate for the first time after 2012. For 2018, the report foresees an increase of inflation to 1.4 % of GDP which will increase further to 1.7% of GDP in 2022.