Commission: Greek Economy Showing Signs of Sustained Recovery

The Greek economy is showing signs of sustained recovery, according to the European Commission (EC), which revised upwards its forecasts on Monday for economic growth in 2016.

The EC’s winter report found that improved economic sentiment was supporting recovery in domestic demand. It additionally confirmed that the positive trend will continue into 2017 as long as lagging negotiations over the country’s bailout program are completed in due time.

The Commission estimates a 0.3 percent GDP growth rate for 2016. Its November 2016 report predicted the year would close with a 0.3 percent decline.

Growth was mainly driven by private consumption, investment and exports while economic activity grew in industry, the retail sector and tourism.

The report further estimates a GDP growth rate of 3.1 percent in 2018. Meanwhile, the 2016 deficit is expected to hover at -1.1 percent of GDP against a 2.5-percent deficit, as a percentage of GDP, predicted last autumn.

In the meantime, unemployment dropped in 2016 to 23.4 percent, expected to decline to 22 percent in 2017.