Bank of Greece Sees 1.6% GDP Growth, Lower than Expected

The Bank of Greece cut its growth forecast for 2017, as it estimates the annual GDP to grow by 1.6 percent, which is lower than the 2.5 percent previously expected.

According to the central bank’s Monetary Policy Report the delay in concluding the second review of the Greek debt program and the economic uncertainty has led to a decrease in investments.

Despite the grim forecast, the BoG said medium-term prospects remain positive, as long as the current program of reforms continues. It also underlined that Greece’s creditors need to specify their commitment to medium-term debt relief measures, in order to ensure the sustainability of debt over the medium to long term.

Greece has received three bailouts since 2010, and the latest runs out in mid-2018.