Greece lowers GDP Growth Estimates in Latest Update

Greece has lowered GDP forecast in the latest budget estimates to 1.8 percent growth compared to 2.7 percent growth estimate earlier. The state news agency ANA informed that Greek government will improve tax net and there will be additional austerity measures. Greece recently reached a deal with its creditors and the country is now looking at stable economic environment. The government is also on a strong footing and there is a strong chance of lawmakers passing austerity measures. Greek government is planning to widen its tax net in year 2019 and 2020.

The European Commission has estimated growth at 2.1 percent, as per February report. Majority of countries in European Union are expecting strong growth due to increased local demand and gradual improvement in consumer sentiment.

The Right-Wing opposition has already condemned the austerity measures and pledged to vote against the resolutions. Prime Minister Alexis Tsipras has 153 votes in favor out of total 300 votes.

If the conditions remain stable and Greece secures debt reduction, the country could also hit bond markets in 2018. Tsipras informed that his government will ask for debt reduction in exchange for austerity measures. The pension cuts planned by the Greek government could save Euro 4.5 billion annually. Majority of Workers Unions in Greece have called for a nationwide strike on Wednesday.