IMF’s expectations for Greek growth remain low

IMF’s expectations for Greek growth remain low

The International Monetary Fund keeps the threshold for the growth of the Greek economy in 2020 at 2.2%, well below the government’s projections of 2.8%, according to its report on World Economic Outlook.

IMF’s prediction is the same with the one last March. For this year, the report coincides with the government’s 2% growth estimate, compared to IMF’s March forecast of 2.4% GDP growth, however before ELSTAT’s figures for 1.5% growth in the first half of 2019 came to light. Furthermore, the international organization continues to forecast insignificant medium-term growth, placing only 0.9% of GDP growth in 2024.

As for the 4th quarter of this year, the international organization estimates that it will close with a growth rate of 3%, against 1.5% in the corresponding period last year and against the 1.4% projections for the last quarter of 2020.

Regarding other projections concerning our country, IMF estimates that inflation will rise to 0.6% for the current year and will surge by 0.3% in 2020. For the medium term, the Fund claims that Inflation will be at 1.8% in 2024.

When it comes to the current account deficit, the Fund says it will stand at 3% for 2019, decreased by 0.5% compared to 2018. For 2020, however, IMF estimates that the deficit will reach 3.3%, while for 2024 it is estimated to be fixed at 4.5%.

Moreover, the report shows that the Fund is also revising its projections for unemployment, as it observes a faster decline. In particular, IMF places unemployment rates at 17.8% for 2019, down by 0.3% from its estimate one year ago, and at 16.8% for 2020./ibna