Sunday, May 14, 2017

Greece downgrades 2017 growth forecasts

by Kerin Hope & Claire Jones

Financial Times

May 14, 2017

Greece has unveiled a four-year budget proposal that assumes sharply lower growth rates after months of wrangling with international creditors over reforms needed to unlock further bailout aid and open the way for medium-term debt relief.

The Greek economy is projected to grow 1.8 per cent this year, against an earlier forecast of 2.7 per cent according to the proposal, which was presented to parliament late on Saturday alongside an omnibus bill containing scores of structural reforms.

Lawmakers are set to approve both bills by May 18, ahead of a meeting of the euro area finance ministers on May 22 where the issue of debt relief for Greece is due to be discussed.

The Syriza government’s revised growth projection for 2017 is more pessimistic than the European Commission’s forecast of 2.1 per cent, down from 2.7 per cent at the start of this year.


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