Greece cuts 2017 growth forecast

Monday, May 15th, 2017
Last Update: 10:07
Greece cut its 2017 growth forecast to 1.8 percent from 2.7 percent, according to a mid-term budget plan unveiled late on Saturday, driven by uncertainty caused by delays in concluding the latest review of bailout reforms.According to Reuters, Greece and its foreign creditors reached a deal on reforms in early May after six months of tense negotiations but the wrangling hurt economic activity. The Greek central bank governor had warned the delays could hobble economic recovery.

The 2018-21 plan was submitted to parliament along with the reform deal which lawmakers need to approve.

It forecasts growth of 2.4 percent in 2018 and 2.6 percent in 2019. The projections are lower than those of the EU Commission, which also cut its growth estimates last week to 2.1 percent this year from 2.7 percent forecast three months ago.

GDP growth was also set to shrink to 2.5 percent in 2018 from previously estimated 3.1 percent, the Commission said.

The government hopes that legislating the new measures by May 18 will allow its euro zone partners to approve the deal when they meet on May 22 and release a new tranche of bailout funds.

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