ECONOMY

EBRD report sees continued recovery for Greece

ebrd-report-sees-continued-recovery-for-greece

The European Bank for Reconstruction and Development (EBRD) expects Greece's recovery to continue this year and next, with growth projected to rise to 2.2 percent in both 2019 and 2020, after a 1.9 percent rate in 2018.

In its latest economic outlook published on Wednesday, the ERBD trimmed the outlook for its near-40 country region for 2019, citing a slowdown in global trade as well as the sharp economic deceleration in Turkey.

Turkey is expected to see its economy contract by one percent this year, before a gradual recovery that should see 2020 growth come in at around 2.5 percent, the EBRD added.

“The lira’s depreciation and high interest rates will continue to dampen consumption and investment, although net exports should make a positive contribution to growth,” it said.

The EBRD expects growth in 2019 to “moderate across virtually all the EBRD regions, with the exception of the southern and eastern Mediterranean,” where it is seen slowing down to around 3 percent in both 2019 and 2020, from 3.4 percent in 2018.

Across the EBRD economies, its expects average growth a 2.3 percent, a 0.3 percentage point cut from the previous November forecast, and compared with 3.4 percent expansion in 2018. However, it forecasts a recovery to 2.6 percent in 2020. [Combined reports/Reuters]