What are the expected GDP growth rates for Greece in the coming years?

Question

Accepted Answer

Greece's GDP Growth Forecasted to Turn Positive in the Coming Years

Moody's projects that Greece's economy will experience positive growth by the end of the current year, with a further acceleration anticipated for the following year. This outlook reflects an expected economic expansion, a shift from the contractions seen in previous periods.
Expected Economic Expansion by Year-End

By the close of the current year, Moody's anticipates that Greece's economy will have expanded by 0.4 percent. This projection marks a significant improvement, especially when compared to the 6.0 percent contraction experienced in 2013, and indicates a better-than-expected performance in the first quarter of this year, which saw a contraction of 0.9 percent.
Projected Growth for the Upcoming Year

Looking ahead to next year, Moody's forecasts a more robust growth rate for the Greek economy, estimating an expansion of 1.2 percent. This anticipated pickup in economic activity is supported by the government's commitment to fiscal consolidation and ongoing structural reforms.
Fiscal Improvements and Debt Trajectory

The ratings agency's positive outlook is underpinned by improvements in the government's finances and its dedication to further fiscal gains. Moody's expects Greece's debt burden to peak this year, at 179 percent of GDP, and subsequently begin a slow decline as the economy expands. Furthermore, Greece is projected to meet the primary budget surplus target of 1.6 percent set by its bailout lenders, including the International Monetary Fund, the European Central Bank, and the European Commission.
Progress in Structural Reforms

Moody's also acknowledged the government's efforts in implementing structural reforms, particularly in the labor and some product markets. While the overall results of mandated reforms have been mixed, the progress made in these specific areas has been noted as significant, leading to wage and price adjustments that exceed those seen in other peripheral euro area countries.

Reading history

Hide →

This history is cleared when the page is closed.

What are the expected GDP growth rates for Greece in the coming years?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends