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ATHENS: Greece's economy will economy will continue to recover at a moderate clip of around 1.8pc this year, the influential Greek think-tank IOBE predicted on Wednesday, trimming a previous forecast.

The new forecast by the Foundation of Economic and Industrial Research in its quarterly review is close to the central bank's 1.9pc projected rate. It previously saw an expansion rate of 2.0pc.

Greece's economy is recovering from a 10-year recession. It has to a large extent corrected the imbalances of its twin deficits - its fiscal derailment and the current account gap.

The 180 billion euro economy grew at an annual 1.9pc last year as the country emerged from its third and last bailout programme in August 2018.

The economy's annual expansion pace decelerated to 1.3pc in this year's first quarter from a downwardly revised 1.5pc in the previous quarter.

IOBE predicted that Greece's unemployment rate, the highest in the euro zone at 18.1pc in March, will decline at a slower pace this year to settle slightly below 18pc. It predicted stronger job growth in export sectors.

Copyright Reuters, 2019

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