The Greek economy will remain in recession in 2016 but will grow by 2.7 pct in 2017, the International Monetary Fund (IMF) said on Tuesday. The IMF, in its spring estimates on world economy, said that Greece’s Gross Domestic Product shrank by 0.2 pct in 2015 and estimated that the GDP will contract by 0.6 pct this year, rising by 2.7 pct in 2017. The IMF said that the inflation rate will stabilize this year (0.0 pct after an -1.1 pct rate in 2015) and will rise by 0.6 pct in 2017.
The report said that the Greek figures for 2015 were preliminary, as the IMF lacked final fiscal projections at the moment because of ongoing negotiations with Greek authorities and European partners over setting fiscal targets in a new dynamic adjustment programme.
The IMF also revised downwards its estimates for the global economy, expecting a 3.2 pct growth of global GDP this year and 3.5 pct in 2017, down from previous estimates made in January for growth rates of 3.4 pct in 2016 and 3.6 pct in 2017.
The IMF sees risks and threats to the global economy linked with the outbreak of a new financial turmoil because of a shock in confidence to the system. Other possible causes of turmoil could be a prolonged period of low energy prices, a sharp fall in growth in China, while geopolitical uncertainties, political dispute, terrorism, refugee crisis and possible global epidemic outbreak.
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