While the Greek economy is not expected to grow more than 1.9 percent this year, the Bank of Greece foresees growth rates of 2.4 and 2.5 percent for 2020 and 2021 respectively, it said in its Interim Report on Monetary Policy, presented to Parliament on Friday.
“The government has made a strong start and has embarked on a broad program of reforms and economic policies, with a focus on unfreezing already approved landmark investment projects, speeding up privatizations, attracting investment, overhauling the public administration and reducing taxation. The reform effort has already borne fruit, leading to a decline in government bond yields, and has been welcomed by international investors and Greece’s European partners,” the report, which was submitted by Bank of Greece Governor Yannis Stournaras says.
The central bank also sees Greece achieving the primary surplus target of 3.5 percent of gross domestic product in 2019 and 2020, while it expects consumer spending to show only moderate growth as households use a part of the expected increase in their income to pay off debts and invest in savings.
For the full synopsis of the report in English, click here.