IMF keeps its 2025 GDP growth forecast for Greece at 2.1%

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- The International Monetary Fund has kept its forecast for Greece's economic growth this year at 2.1%, citing in a report published on Monday the country's rising investments and solid private consumption.

The IMF said that near-term economic outlook remains favourable for Greece, with real gross domestic product (GDP)sustaining its robust expansion underpinned by EU funding, favourable employment and income growth.

The report did not mention the new tariffs imposed by U.S. President Donald Trump. Greece's Prime Minister Kyriakos Mitsotakis said on Monday the economy can withstand the new challenges that U.S. tariffs pose. Exports to the United States represent about 4% of Greece's total exports.

"Investment will continue to be a key driver, supported by Next Generation EU funded projects. Private consumption growth will remain solid," the IMF said after concluding the Article IV consultation.

Greece - which almost went bankrupt in the past decade - has emerged from a 2009-2018 debt crisis and expects economic growth of 2.3% this year, outpacing the euro zone average.

However, the IMF said that risks to inflation are tilted upward due to a growth slowdown in major EU countries and global policy uncertainty, and called for the right policy mix and ambitious structural reforms to help sustain robust growth.

"Maintaining primary surpluses above 2 percent of GDP in the medium term will further enhance debt sustainability and build buffers against future shocks," the lender said.

It welcomed the firm downward trajectory of the public debt-to-GDP ratio and praised Greek banks for the improved profitability, their asset quality and the reduction of non- performing loan ratio to around 3 percent.


(Reporting by Lefteris Papadimas; Editing by Daria Sito-Sucic and Alexandra Hudson)

((lefteris.papadimas@thomsonreuters.com; +30 6944 248134; Reuters Messaging: lefteris.papadimas.reuters.com@reuters.net))

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