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.