Greece slashes GDP forecast

The Greek government Sunday slashed the gross domestic product (GDP) growth forecast for 2017 as it moved toward submitting new austerity measures, including a wider tax net, for approval by lawmakers.
The government lowered the GDP growth target for the year to 1.8 percent from a previous estimate of 2.7 percent, the state news agency ANA reported.
The latest estimate also falls short of the European Commission’s projection of 2.1 percent growth, set in February.
The downward revision appeared in the government’s budget proposal for 2017-2021, handed to the Parliament Saturday night, along with a bill proposing a tighter budget, ANA said.
Greece is seeking to meet the demands of creditors in an arduous bailout process with a proposed new law projecting tax increases for 2019 and 2020, even for income just above the poverty level.
That along with pension cuts — for the 14th time since the beginning of the crisis — is projected to earn €4.5 billion ($4.9 billion), according to ANA.
Part of a July 2015 bailout deal with the EU and the International Monetary Fund (IMF) to provide debt relief for the country, the new proposals are set for adoption Thursday night, according to parliamentary officials.
Lagging in the polls for being seen as caving to creditor demands, Prime Minister Alexis Tsipras will need full backing from his small majority of 153 out of 300 seats in the Parliament.
The right-wing opposition has said it will vote against the program.
During negotiations with creditors, Tsipras managed to secure some measures against poverty, such as cafeterias to serve free meals, day care and rent subsidies.
But the country’s main unions called for a national general strike Wednesday.

Source: Arab News