EU Commission: Greece's Growth to Remain Resilient at 2.2 pct of GDP in 2019

Greece's growth rate is expected to remain resilient despite an external slowdown, with real GDP growth rising to 2.2 pct in 2019, according to the European Commission's spring forecast released on Tuesday.

"In 2019, real GDP growth is expected to strengthen to 2.2 pct. The slowdown of the external environment will have a negative but limited impact on Greece’s export performance, due to the low income elasticity of demand for Greece’s main export commodities. This drag from the external side should be offset by private consumption, which received a short-term boost through the recent hike in the minimum wage, the report said.

The report said that Greece's economic recovery continued, with real GDP growing by 1.9 pct in 2018 driven primarily by "buoyant export performance".

"With real growth of exports at 8.7 pct, Greece managed to increase its world market shares in both goods and services, while imports remained subdued. Private consumption maintained its momentum and provided a further contribution to annual GDP growth. Investment, however, registered a major setback, partly due to heavy underspending of the public investment budget. Under-execution of the budget also put a drag on public consumption and thereby on GDP," the report said.