OECD: Greece's Growth Rate to Reach 2.3 pct in 2019
Greece's growth rate is expected to reach 2.3 pct in 2019, according to the latest report of the Organisation for Economic Cooperation and Development (OECD).
Exports will be the main driver of growth, the report said, benefitting from rising external demand and improved competitiveness. Investment and private consumption will recover as confidence rebuilds, following improved fiscal crediblity. Continuing high excess capacity will limit price and wage pressures.
In 2018, the budget surplus is seen out-performing the medium-term target, through restrained expenditure and improved tax collection, but then decline towards the target in 2019. Still, the report noted, public debt remains high. Reducing it will require sustained pro-growth reforms, high primary surpluses and additional debt restructuring. Full reform implementation and keeping the momentum are key to strengthening inclusive growth. Ongoing reforms to better administer and target social protection will relieve high poverty, especially among children.