Greek Economic Growth and Job Creation to Accelerate in 2019

An International Monetary Fund (IMF) first post-programme monitoring report focused on achieving the goal of fiscal balancing in the Greek economy and noted that this effort should be made within the framework of medium-term fiscal targets agreed between Greece and its European partners.

More specifically, the report said that growth and job creation in Greece are expected to accelerate further in 2019, while public sector financing needs remain manageable. To maintain growth momentum, reform efforts should focus on raising productivity and reducing vulnerabilities. Policy priorities include creating fiscal space to lower direct taxes and raise public investment and targeted social spending, accelerating the clean-up of bank balance sheets, and enhancing labor market flexibility and cost competitiveness. This would also help to mitigate intensifying downside risks.