The economy performed worse than expected last year. The Hellenic Statistical Authority (ELSTAT) released figures yesterday put the expansion of the country’s gross domestic product at just 1.4% compared to 2016. The government and its creditors had anticipated annual growth of 1.6%, thus raising concerns about the future, especially as the bailout program is currently due to end in August.
Economists are anticipating that growth this year will not exceed 2%, compared to a forecast for 2.5% in the 2018 budget. If GDP continues to fail to meet expectations then that is likely to have a negative impact on fiscal measures.
Michalis Masourakis, chief economist at the Hellenic Federation of Enterprises also referenced weaker consumption: “This is a growth rate dominated by weak household consumption, while the 9.6 percent increase in investments was mainly related to tourism and logistics,” he told the Kathimerini.