Greece Expects to Maintain High Growth Rates in Investments, Report Says
Greece is expected to maintain high growth rates in investments, after a 9.5 pct annual growth rate in 2017, with the European Commission estimating double-digit growth rates in 2018 and 2019, the economy ministry said in its Economic Development report for the period March-April 2018 released on Monday.
This estimate of high growth rates in investments in 2018 is based on the impact of a forthcoming settlement of state arrears to the private sector, worth 3.5 billion euro, by August 2018. This is expected to boost the country's GDP by 0.6 pct to 0.9 pct. Another boosting factor is an expected reduction of tax rates or other ways of supporting the real economy, a national growth strategy, a gradual increase in the net investment position of households and enterprises (along with an increase in saving deposits from 119 billion euro in April 2017 to 126 billion in March 2018). The economy ministry said that a gradual increase of funding to non-financial sector enterprises of the private sector, a speedier reduction of non-performing loans, a gradual lifting of capital controls were also expected to support higher investment in the country.