2015-05-05 14:51 [Photo: EDrost88 / Flickr (CC BY 2.0)] 
Political uncertainty and tighter financing conditions meant that the EC strongly reduced economic growth forecast for Greece for this year. While still in February predicted the dynamics of 2.5 percent. GDP, it now estimates put the growth of 0.5 percent.
– In the light of sustained uncertainty (in Greece – PAP) could not avoid revise forecasts downward. Now we expect that GDP will be an increase this year by 0.5 percent. – Said at a Tuesday press conference in Brussels EU Commissioner for. Economic and financial Pierre Moscovici.
The forecast presented by the EC was established on the assumption that Athens will fail to reach an agreement with the European Commission, the European Central Bank and the International Monetary Fund on reforms and comes to the payment of the next tranche of financial assistance for this country. Talks on this issue stretches from the beginning of the year. Greece does not fulfill the conditions that dictate its lenders, and they therefore do not agree to pay the loans.
– Our common goal is that Greece remains in the euro zone – assured Moscovici, stressing that the EC wants, by the end of June worked out an agreement with Athens.
In 2014. after several years of recession, Greece managed to get out of the hole. GDP growth estimated by the Commission amounted to 0.8 percent. The EC report highlights that for the first time in five years time there was also an increase in private consumption. The situation also improved in the services sector, exports, and investment.
2015 years have been even better, bringing one of the highest growth of GDP in the EU reaching – according to European Commission forecasts winter – 2.5 percent. – This positive momentum was, however, restrained by uncertainty, which runs from the announcement of early elections in December – write analysts Commission. In their view, a particularly damaging is the lack of transparency as to the position of the new government towards its creditors from the EU and the IMF.
The display, which are measured economic sentiment (ESI) fell in March, showing declining confidence in all sectors, despite consumer confidence remained at a relatively high level. The PMI index showing willingness to purchase various goods among managers also suggests further deterioration in production.
The European Commission predicts that next year the situation will improve Greece. EC forecasts indicate a rise of 2.9 percent. – We believe that there are grounds for improvement in 2016. Provided that the back on the right path and to the necessary reforms – said Moscovici. He reiterated that it is necessary to fill by the Greeks obligations to the European partners.
An analysis of the European Commission shows that the reduction in growth for this year will contribute to a significant increase in the level of public debt in relation to GDP. While in February it predicted that in 2015. Greece’s debt will fall in 2015. To a level of 170 per cent. GDP, so now he has to amount to 180 percent. GDP.
Similarly, the case looks of the budget deficit – instead of a surplus of up to 1.1 percent. GDP, the Greek deficit is expected to reach this year 2.1 percent. GDP. – The slowdown in the economic recovery has a significant impact on public finances of Greece – noted in the report the European Commission.
On Monday will be held another meeting of finance ministers of the euro area on Greece. The experts from this country and representatives of the Brussels group (ie the EC, IMF and ECB) worked throughout the weekend to bring a consensus. Until now – despite progress – has not been announced, but a breakthrough that would allow for the payment of funds to Athens.
Read more in Money.pl
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