Think-tank trims Greek 2019 economic growth forecast to 1.8%

[ATHENS] Greece's economy will economy will continue to recover at a moderate clip of around 1.8 per cent this year, the influential Greek think-tank IOBE predicted on Wednesday, trimming a previous forecast.

The new forecast by the Foundation of Economic and Industrial Research in its quarterly review is close to the central bank's 1.9 per cent projected rate. It previously saw an expansion rate of 2.0 per cent.

Greece's economy is recovering from a 10-year recession. It has to a large extent corrected the imbalances of its twin deficits - its fiscal derailment and the current account gap.

The 180 billion euro economy grew at an annual 1.9 per cent last year as the country emerged from its third and last bailout programme in August 2018.

The economy's annual expansion pace decelerated to 1.3 per cent in this year's first quarter from a downwardly revised 1.5 per cent in the previous quarter.

IOBE predicted that Greece's unemployment rate, the highest in the euro zone at 18.1 per cent in March, will decline at a slower pace this year to settle slightly below 18 per cent. It predicted stronger job growth in export sectors. 

REUTERS