The Bank of Greece (BoG) on Friday revised its figure for Greek economic growth in 2017, now predicting a 1.6 percent GDP increase.
The forecast was including in the BoG’s report for monetary policy in 2016-2017.
The previous forecast by Greece’s central bank was a more robust 2.5 percent, in line with last year’s forecasts by European creditors and the EU Commission, which had even pointed to a 2.9-percent GDP hike for 2017 in the crisis-battered country.
Nevertheless, the delay in finally concluding the second review of the Greek program – achieved after more than year of delay on June 15 – and resurgent uncertainty in the country, led to a “significant” decrease in prospective investments, according to the BoG report.
Conversely, the BoG said medium-term prospects remain positive, as long as the implementation of memorandum-mandated reforms continues unhindered – another standing phrase repeated by practically every high-ranking official associated with the Greek adjustment program.
Positive economic and political developments in the EU as a whole also benefit Greece’s recovery, the BoG stated.
