EBRD: The Greek economy will register a zero growth rate in 2016 and 2% in 2017

The Greek economy will register a zero growth rate in 2016 and a 2 percent in 2017, the European Bank for Reconstruction and Development (EBRD) said in its “Regional Economic Prospects” report published on Thursday.

“The Greek economy shrunk 0.7 percent year-on-year in the first half of 2016, partly due to the baseline effects from the increase of consumer spending in the first half of 2015. As a result, economic growth will possibly be positive in the second half of 2016, giving a zero growth rate for the full year,” the bank said.

“For 2017, the outlook is more favorable, but the continuing controls on capital movement (although they have somewhat eased in recent months), further fiscal consolidation measures and the weaknesses in the financial sector, where non-performing loans remain significant, will likely limit the growth rate to 2 percent,” it added.