Citi: Excessive forecasts”

The interview of prime minister Alexis Tsipras gloss Citigroup, featuring the predictions of the excessive…
As pointed out in its analysis, which publishes the capital.gr, the Greek prime minister said that Greece will carry out a first test on the markets in 2017 and is planning a full return in 2018. However, he admitted that this depends on the debt relief, the improvement of growth and the positive assessment of the ECB for the viability of the Greek debt, something that will activate the integration of Greek bonds in QE in early 2017.
At the same time, Alexis Tsipras said that growth in 2016 will move to 0,2%-0,4% of GDP, after tourism revenues and the tax revenues that exceeded expectations.
As pointed out by Citi, if it is true that the GDP growth was less negative than that in 2015 when the imposition of the capital controls and the political unrest was soaring, in the first half of 2016 remained negative in annual terms in the -1%, although it was slightly positive in the second quarter (+0,2%).
In order to make the 2016 growth, albeit at 0.2%, the GDP should grow by 0.8% per year in both quarters of the second semester which is very up to very, very unlikely, explains Citi analyzing the estimates of Tsipras.
As pointed out, the Greek economy will shrink by 0.3% in 2016, mainly because of the upward revision in the first half of the year.
While he warns that the tourist industry is not expected to give the same boost to growth as that given to the 2013-2015 and the weaker revenue from tourism is one of the reasons that make the Citi appreciates that the development will remain weak as the second half of 2016 and 2017.
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