European Commission to cut its 2017e Greek GDP growth forecast

Monday, May 8th, 2017
Last Update: 09:11

The European Commission will revise down its growth forecast for Greece this year to around 2% from a previous 2.7%, an EU official said today.

According to the European official, the downward revision of the Greek GDP growth forecast was mostly due to uncertainty caused by delays in concluding the 2nd programme review.

Regarding the loan disbursement post the review completion, this will be c€7bn plus an amount for clearing public sector arrears in the domestic market.

He also added that the release of the disbursement would need c4-5 weeks after a political agreement was reached in the 22May Eurogroup, while the IMF would need more time (i.e. 5-6 weeks) to decide on its participation in the Greek programme, due to its internal procedures.Moreover, the same official stressed that in order to conclude the 2nd review a total of 140 prior actions are required, of which 40 have already been implemented, while c80 need to be legislated by the Greek government (the remaining 20 are of technical nature).

Finally, he expressed the European institutions΄ confidence that Greece will achieve its fiscal goals for 2017 without additional measures and said there was a small gap between 0.2-0.3%-of-GDP for 2018.

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