On Monday the European Commission has published a report with country-specific recommendations for the European member states, where it is argued that Greece will have a 0.6% growth rate in 2014 and a 2.9% rate in 2015.
While the Commission is pleased with the extent of measures that have been pushed forward since July 2013, there are concerns over the huge challenges and delays in many sectors. The Greek government is now expected to carry out the implementation of growth reforms, with exports, tourism and shipping being key sectors.
The Commission expects the rate of imports to drop, while exports are set to increase by 29% in 2015. Investments and private consumption are expected to contribute significantly towards growth. The rate of unemployment which averaged at 27.3% in 2013 may drop to 26% in 2014. Consumer prices may also drop, reflecting the cost of labor and market reforms.
The European Commission has argued that the financial recovery must be coupled with a gradual increase of prices in 2015. The developments in Turkey and Ukraine may pose a threat to the overall growth trend and implementation of reforms in Europe, without discounting the possibility of influencing investor trust.
