Greek Economy to Grow 1.5%

Greece’s economy will expand by 1.5% or less this year, the influential IOBE think tank estimated on Wednesday, trimming a previous forecast in January that projected 1.5 to 1.8% growth, Reuters reported. The think tank projects slower economic growth this year compared to the 2.7% forecast by the government as the protracted bailout review has increased uncertainty. IOBE expects Greece’s jobless rate, the highest in the eurozone, to continue to decline for the fourth consecutive year in 2017 to 22.2%, but at a slower pace than last year. “The bailout review, once again a protracted process, has consequences that we have seen in the past—it exacerbates uncertainty.” the think tank said in a quarterly review. “Households and businesses put off decisions until the new fiscal measures and reforms are finalized, which has a negative impact on economic activity.” Meanwhile, Greek Prime Minister Alexis Tsipras held out for a commitment from lenders to debt relief on Tuesday, and said he was confident new talks in Athens over a long-stalled bailout review would reach a deal by a May 22 target.