The IMF revised, upwards, its forecast for the Greek economy this year, continuing to predict that economic growth in the east Mediterranean country will remain above the Eurozone average, while at the same time ominously doubling its forecast for inflation in 2022.

Additionally, the Washington D.C.-based Fund, in its annual World Economic Outlook (WEO) report, curtailed its higher forecast for Greek GDP growth in 2023. The IMF also cited a significant reduction in unemployment in the country in 2022, compared to 2021, while also assessing that the high current account balance deficit will be maintained.

Specifically, the IMF reports forecasts that GDP growth in 2022 will reach 5.2 percent, up from a previous forecast of 3.5 percent, as listed in the previous report. At the same time, the revised forecast for GDP growth in 2023 drops to a modest 1.8 percent, down from a 2.6-percent forecast cited only six months ago by the IMF.

A Greek government forecast, cited in the draft 2023 budget tabled only a few days ago, lists a figure of 5.3 percent for the ongoing year, falling to 2.1 percent in 2023.

The entire report is found here:

World Economic Outlook, October 2022 (imf.org)

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