Positive forecasts for Greek economy as growth continues

Greek economy

Greek economy

The European Bank for Reconstruction and Development (EBRD) said in its autumn economic forecasts report released on Tuesday, that the Greek economy is set to grow by 2% this year and 2.4% in 2020.

According to the EBRD, Greece’s economic recovery began in 2017 and continued in 2018 and the first half of 2019, although at a slightly slower pace than expected, with 1.9% GDP growth in 2018, and 1.5% growth year on year in the first half of 2019.

Key drivers behind the growth figures is the exporting sector of goods and services, private consumption retains a positive impact on growth, and unemployment continues to decline, down to 17% in August 2019.

The general government primary surplus was 4.4% of GDP in 2018, well above the 3.5% target, and is on track to achieve this target in 2019. Capital controls have been fully lifted as of 1 September 2019.

Meanwhile the Bank of Greece released its figures on Wednesday, showing the Greek state budget recorded a primary surplus of 3.66 billion euros in the January-October period.

In a report on budget execution on a cash basis, the central bank said the general government recorded a surplus of 101 million euros in the 10-month period from a deficit of 309 million in the corresponding period last year. Regular budget revenue was 40.495 billion euros in the January-October period, from 40.749 billion in 2018, while regular budget spending totalled 41.543 billion euros in the 10-month period from 41.156 billion in 2018.