Delays lead to GDP revision by foreign banks

The Greek economy will likely pay a heavy price for the delay in the bailout review, as international banks and economic entities have been downwardly revising their estimates for the country’s gross domestic product this year.

Against the budget forecast for 2.7 percent growth, Citigroup and Barclays on Thursday estimated the annual expansion rate at below 0.5 percent of GDP.

Sources say similar assessments are being made by Greek banks too.

Citigroup revised its growth projection from 1.1 percent to 0.5 percent, saying that the first half will be recessionary.