Greece » Outlook

The forecast of International Property Brokers shows inflation in Greece is likely to rise up because of demand pressure and current account deficit is also expected to remain huge.  The Greece central bank revised down its 2008, forcast to 3.5% from a previous estimate of 3.75%. The greece economy grew fast at 4% in year 2007.Now the Greece economy is estimated to grow by around 3½ percent in 2008 and 2009. As far as inflation is concerned it has jumped but should ease back as the effect of oil and commodity price hikes decreases. Inflation is likely to remain above the euro area average, thus depending upon competitiveness.  Ongoing financial consolidation should be a main priority and primary spending should be reduced along with the broadening of tax base. To fulfill all the demands because of growing population the public debt should be reduced as share of GDP.