Tsakalotos dismisses OECD warnings

The measures that the government announced two weeks ago are weighing on the economy’s growth weight and are seen leading to a smaller primary budget surplus in 2019 and 2020, according to the latest forecasts by the Organization for Economic Cooperation and Development (OECD).

The forecasts point to 2.1 percent growth this year, dropping to 2 percent in 2020, while the government’s official estimate is for 2.3 percent expansion in both years.

“Deviations from the current medium-term fiscal strategy would undermine gains in fiscal credibility. Delays in reforms to improve the business environment, competitiveness and banks’ health would create downside risks to the projected recovery in investment,” the OECD warned.

However, Finance Minister Euclid Tsakalotos rejected these forecasts, citing the primary surplus overruns of previous years, claiming, “We were right.”