Εconomy ministry report: Greek economy to grow 2.3 pct in 2018

Greek economy is expected to grow 2.3 percent in 2018, as economic expansion in 2017 was based on strong fundamentals, the economy ministry said on Tuesday in its latest report on economic developments.

“Exactly because the recovery of the economy in 2017 was based on healthy fundamentals, it is expected to lead to a stronger expansion in 2018 of 2.3 pct,” the report said.

“This assessment, which is compatible with the official forecasts (government and international organizations), is also based on the completion of the third [program] review, the acceleration of the use of public assets and reforms, the belief in the completion of the program, and the launching of negotiations on debt relief, as a result of a clear improvement in the economic climate indicators,” it added.

In 2017, the economy recorded a growth rate of 1.4 percent, the highest in the last decade, leaving recession behind, according to the report. “However, the momentum of recovery is attributable to both the pace and its quality and viability, that is to say, its outlook,” it says.

The recovery last year was based solely on an increase in volume of productive investment (9.6 pct), exports of goods and services (6.7 pct) and employment (2 pct), which are “the main components of the government’s development strategy to reform the country’s productive model on an outward-looking basis and with social participation and cohesion.”