BoG warns of stagnant growth rate

Central banker Yannis Stournaras warned on Monday of the risks of a fiscal derailment and reform backtracking due to the upcoming election this year, when growth is now expected to come to just 1.9 percent.

"As the country enters the election cycle, there is an increase in risks of a reform slowdown and fiscal relaxation, increasing financial uncertainty. There is therefore the danger of a reversal in the significant progress recorded to date," the governor of the Bank of Greece said upon presenting his 2018 report to the central bank's general meeting. He made no secret of his concerns over pre-election pressure for a greater fiscal expansion - as he described the handouts.

The BoG downwardly revised its growth rate estimates for this year to 1.9 percent, the same as the rate recorded in 2018 and considerably below the level of 2.5 percent provided by the state...