IMF: The Greek economy will grow slightly this year

The Greek economy will grow slightly this year, the International Monetary Fund said on Tuesday. In its World Economic Outlook report, the IMF said that the Greek economy will grow by 0.1 pct in 2016, in contrast with a 2017 Greek draft budget envisaging a 0.3 pct recession this year.

The Greek economy will grow by 2.8 pct in 2017, up from a 2.7 pct growth rate envisaged in the Greek budget. The IMF, however, predicted a decline in the unemployment rate to 23.3 pct this year and to 21.5 pct in 2017, higher from budget forecasts of 21.5 pct and 20.4 pct, respectively.

The inflation rate will remain in negative territory this year (-0.1 pct), recovering to 0.6 pct in 2017 and to 1.8 pct in 2021. The 2017 draft budget envisages an inflation rate of 0.4 pct this year and 0.8 pct in 2017.
The country’s current account balance will be balanced in 2016 and 2017 the IMF said, adding that this balance will be maintained until 2021. Delia Velculescu, the IMF’s representative in the quartet of the country’s creditors, presenting the IMF’s report on September 23 had said that economic growth prospects in Greece remained weak and remained subject to high downward risks, while unemployment was expected to remain at double digit rates until the middle of the century.