The Greek economy is projected to grow by 2.1 pct in 2020 and 2.0 pct in 2021, following a 1.8 pct growth rate in 2019, the Organisation for Economic Cooperation and Development (OECD) said on Thursday, according to ANA.
OECD, in its economic outlook report, pointed out it expected Greece to achieve a target for a 3.5 pct of GDP primary surplus next year and noted that a government-planned expansionary fiscal policy could give a greater-than-expected boost to the economy.
The report said that exports are driving the recovery, buoyed by tourism receipts. Reform-induced gains in price competitiveness are supporting exports of goods, despite sluggish external demand. Rising business confidence, improving financial conditions and record-low lending rates are supporting business investment. Bank lending to non-financial corporations has been increasing since early 2019 and remaining capital controls were abolished in September 2019. Banks’ non-performing loans (NPLs) are gradually dropping, though they remain high at 44 pct of gross loans.
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