ECONOMY

Brussels cuts 2019 growth forecast to just 1.8 pct

brussels-cuts-2019-growth-forecast-to-just-1-8-pct

According to its fall forecasts published on Thursday, the European Commission appears less optimistic than the government as regards Greek economic growth, while on the fiscal front it foresees a slightly higher primary surplus than the Finance Ministry, under certain conditions.

For this year it forecasts a growth rate of 1.8 percent, rising to 2.3 percent in 2020, against a government forecast for 2.8 percent. It sees growth shrinking to 2 percent in 2021, suggesting that the economy will not take off as hoped anytime soon.

Brussels approves of the tax measures Athens has planned for 2020, saying they will contribute to the acceleration of growth. However, it said it has not received any detailed information on the so-called social dividend, and warned of fiscal risks from new court decisions on pensions and civil servants’ salaries.