Brussels has revised its Greek growth estimate too

The European Commission has slashed its growth outlook for Greece this year by half a percentage point, as its fall forecasts point to a 1.6 percent expansion of the economy compared to 2.1 percent six months ago. This matches the estimate the Finance Ministry made on Tuesday.

A year ago the 2017 budget had projected the economy would grow 2.7 percent this year, an estimate repeated by the Commission in February, on the condition that the second bailout review was completed on time. The review ran on for many months and the forecasts have been revised by over 1 percent of GDP. This raises questions about the near future, as failure to meet the forecast growth targets will also derail the fiscal projections.

The Commission expects the economy to grow 2.5 percent in 2018, but Brussels has again attached conditions to its forecast, saying it depends on the third bailout review and the program in general continuing and concluding smoothly.