Greece reported zero economic growth in 2016

GreeceThe gross domestic product of Greece remained stable in 2016, according to first estimates released by the Hellenic Statistical Institute. The change in 2016 is 0.0%, while initial forecasts of the Greek government and creditors were to slight growth of 0.3%. These statements comes at a time when the Greek government is negotiating with senior creditors – the EU and IMF, the agreement to continue to provide loans for the country.

The lenders want new austerity measures for 2019 and 2020 after the end of the current program, which provides for the granting of loans to the country amounting to 86 billion EUR until 2018.

On Monday, the Hellenic Statistical Institute published data for the fourth quarter of 2016, according to which GDP fell by 1.2% compared to the third quarter and by 1.1% compared to the fourth quarter of 2015.

Greece faces a review of its rescue program, which envisages liberalization of labor laws. Therefore the authorities in Athens want to show that taxes and slashed pensions, agreed last year in the finance rescue package worth 86 billion EUR, will bear fruit and lead to recovery this year.

Earlier, Prime Minister Alexis Tsipras said at a meeting to the Council of Ministers that the economy turns a new page and will show “very high” levels of growth this year.