International Monetary Fund report: Greek economy to grow by 1.8 pct this year

Greek economy is expected to grow by 1.8 pct this year, 2.6 pct in 2018 and 1.9 pct in 2019, the International Monetary Fund (IMF) said on Monday.

In its report on European economy, the IMF said it expected a 10.8 pct increase in net investments this year, rising to 11.8 pct in 2018 and 13.1 pct in 2019 in Greece, while the country’s fiscal deficit was expected to reach 1.7 pct of GDP this year, falling to 1.1 pct in 2018 and presenting a fiscal surplus of 0.2 pct in 2019.

The IMF said the Greek public debt was expected to reach 180.2 pct of GDP this year, rising to 184.5 pct in 2018 and falling to 177.9 pct of GDP in 2019, while the country’s current account deficit will reach 0.2 pct this year and 0.1 pct in 2018 and 2019.

The IMF said it expected domestic demand to rise 0.6 pct this year, 2.4 pct in 2018 and 1.9 pct in 2019, while the inflation rate is estimated at 1.2 pct this year, rising to 1.3 pct in 2018 and 1.4 pct in 2019. The unemployment rate is projected to fall to 22.3 pct of the workforce this year, to 20.7 pct in 2018 and 19.5 pct in 2019.

The IMF noted that Greece is the only country in Europe presenting a large output gap, with the real GDP moving much lower compared with its potential. The Fund recommended strengthening of efforts to combat corruption in Greece and the withdrawal of Greek banks from the Balkans.