Greek economy to grow by up to 1.5 percent this year: IOBE

A Greek national flag flutters atop the parliament building in Athens

ATHENS (Reuters) – Greece’s economy will grow by 1.5 percent or slightly lower this year, the leading IOBE think tank forecast on Thursday, sticking to a previous forecast in April.

IOBE projects slower economic growth this year compared to the 1.8 percent forecast by the government. The government had also lowered its projections because delays in concluding its latest bailout review had increased uncertainty.

The conclusion of the review last month would help restart stalled investments, the think tank said in its quarterly report.

IOBE expects Greece’s unemployment rate, the euro zone’s highest, to continue to decline for the fourth consecutive year in 2017 to 22.2 percent, but at a slower pace than last year.

(Reporting by Lefteris Papadimas; Writing by Karolina Tagaris)