OECD expects Greek growth at just 1.4 pct in 2017

OECD expects Greek growth at just 1.4 pct in 2017

The Organization for Economic Cooperation and Development has undercut the government’s growth estimates for the 2017-19 period, although it generally agrees that economic conditions will improve in the next couple of years.

In its biannual “Economic Outlook” report published on Tuesday, the OECD said the Greek economy will only expand by 1.4 percent this year, against Athens’s downwardly revised projection for 1.6 percent. Similarly, the OECD puts next year’s growth at 2.3 percent, compared to a 2.5 percent forecast by the government and the European Commission.

There is an even greater distance for 2019, with the OECD anticipating growth at just 2 percent, against an official forecast for 2.6 percent. The lower estimate is justified by the negative impact of the expected increase in imports.

The report also sounds the alarm over widespread poverty and the high level of nonperforming loans that could put future growth at risk.

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