IMF: The Greek economy is expected to grow faster, while fiscal deficit will fall further

The Greek economy is expected to grow faster, while fiscal deficit will fall further and unemployment will decline this year, the International Monetary Fund (IMF) said in its World Economic Outlook report on Tuesday.

The IMF said it expected Greek GDP to grow from 0.8 pct in 2014 to 2.5 pct in 2015 and to 3.7 pct in 2016, with growth rates rising to 4.0 pct in the fourth quarter of 2015, from 1.3 pct in the corresponding period last year. The unemployment rate is projected to fall from 26.5 pct in 2014 to 24.8 pct this year and to 22.1 pct in 2016, while the inflation rate is expected to remain on negative ground (-0.3 pct this year from -1.4 pct last year) before returning to positive growth rates in 2016 (0.3 pct). The general government’s deficit is projected to fall to 0.8 pct of GDP this year from 2.7 pct in 2014, presenting a surplus of 0.7 pct of GDP in 2016. In structural terms, Greece is expected to present a surplus of 2.1 pct of GDP this year and in 2016, from a surplus of 1.4 pct of GDP in 2014.

The IMF expects the Eurozone’s economy to grow by 1.5 pct this year, from 0.9 pct in 2014, and by 1.6 pct in 2016. The unemployment rate is expected to fall to 11.1 pct this year, from 11.6 pct in 2014, falling further to 10.6 pct in 2016.