Greece's Economy To Return To Growth This Year OECD Says

In recent news, the Organization for Economic Co-Operation Development has predicted that the economy in Greece will hit a 1.9% growth rate by the year 2017 and that we see already see improvement in the second half of 2016.

Specifically, a return to growth will come after a deep and prolonged recession in Greece, as recovering confidence boosts investment and consumption and improved competitiveness raises exports. However, the Organization points out that the huge public debt burden is undermining investment and confidence, making some form of additional debt relief crucial.

Unemployment in the country is still very high, which is causing serious social problems, but is now gradually receding. At the same time, OECD stressed the need for modernization of the Employment Organization and expanding active policies in the labor market. The report also mentions that weak productivity accounts for much of the decline in output since the onset of the crisis and suggests the full implementation of structural reforms, so as to boost productivity.

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For the OECD Economic forecast summary, please click here.